Asked by Myrta Perez Vega on Jun 07, 2024
Verified
What was a major cause of inflation in the 1970s?
A) Deregulation of the airline and trucking industries
B) Increased industrial productivity
C) Tight credit policies
D) OPEC price increases
OPEC Price Increases
Refers to occasions when the Organization of Petroleum Exporting Countries decides to raise the price of oil, affecting global economies and energy costs.
Deregulation
The process of removing government restrictions and regulations in industries to improve efficiency and encourage competition.
Industrial Productivity
A measure of the efficiency of production in the industrial sector, often evaluated as the ratio of outputs to inputs over a specific time period.
- Assess the economic environment of the 1970s, highlighting the issues of inflation, stagflation, and the repercussions of OPEC's oil price elevations.
Verified Answer
RS
Raghd SholiJun 11, 2024
Final Answer :
D
Explanation :
OPEC, the Organization of Petroleum Exporting Countries, implemented significant price increases for oil during the 1970s, leading to an energy crisis and high inflation rates. This had a major impact on the global economy, particularly in industrialized nations heavily reliant on oil imports.
Learning Objectives
- Assess the economic environment of the 1970s, highlighting the issues of inflation, stagflation, and the repercussions of OPEC's oil price elevations.