Which statement about the economic crisis of the 1970s is INCORRECT? A. American manufacturing was in decline because U.S. manufacturing plants were old and inefficient compared to newer German and Japanese ones. B. A major economic problem was stagflation a combination of high inflation with a stagnant economy with high unemployment C. Rapid inflation was caused by the deficit spending on the Vietnam War and social programs of the Great Society. D. Low interest rates near 20% which artificially inflated the value of the U.S. dollar causing a major trade imbalance.

Which statement about the economic crisis of the 1970s is INCORRECT? A. American manufacturing was in decline because U.S. manufacturing plants were old and inefficient compared to newer German and Japanese ones. B. A major economic problem was stagflation a combination of high inflation with a stagnant economy with high unemployment C. Rapid inflation was caused by the deficit spending on the Vietnam War and social programs of the Great Society. D. Low interest rates near 20% which artificially inflated the value of the U.S. dollar causing a major trade imbalance.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter32: Macroeconomic Policy Around The World

Section: Chapter Questions

Problem 27CTQ: Explain what will happen in a nation that tries to solve a structural unemployment problem using...

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