Questions: When did the United States economy enter a period of stagflation?
between the 1980s and 2000s
between the 1950s and 1970s
between the 1920s and 1930s
Transcript text: When did the United States economy enter a period of stagflation?
between the 1980s and 2000s
between the 1950s and 1970s
between the 1920s and 1930s
Solution
Answer
The answer is between the 1950s and 1970s.
Explanation
Option 1: between the 1980s and 2000s
This period is not typically associated with stagflation in the United States. The 1980s saw the end of the stagflation period with the implementation of policies by the Federal Reserve under Paul Volcker, which successfully reduced inflation.
Option 2: between the 1950s and 1970s
This is the correct period. The United States experienced stagflation during the 1970s, characterized by high inflation, high unemployment, and stagnant demand. This was largely due to the oil shocks of 1973 and 1979, which led to increased energy prices and contributed to the economic stagnation.
Option 3: between the 1920s and 1930s
This period is associated with the Great Depression, which was marked by deflation and high unemployment, rather than stagflation. The economic conditions of the 1920s and 1930s were quite different from those of the 1970s.