Question

What was one of the economic problems that occurred during the 1970s?

Question 28 options:

deregulation

return to the gold standard

inflation

deflation

Answer 1

The correct answer is "inflation". During the Great Inflation of the 1970s the stock market lost 40% in an 18-month period. Economic growth was at one of its lowest points which caused that unemployment reached two digits in the United States. This was a consequence of the easy-money policies of the American central bank, designed to generate full employment but resulting in generating inflation.