Unit 4- Stagflation

When the economy is growing and the unemployment rate is low, inflation tends to appear for the simple reason that you have more money chasing goods and services.

• True

• False

When GDP is declining and the unemployment rate is high, inflation will typically be

• Higher

• Lower

When did the United States experience stagflation?

• 1950's and early 1960's

• 1960's

• 1970's

• 1990s

Stagflation consists of:

• an economy not growing

• a high unemployment rate

• high inflation

• All the above are characteristics of stagflation

what is one reason why stagflation appeared in the United States economy during the 1970s

• the supply of oil increased in the United States

• 1973 OPEC embargo on oil

• a decrease in oil prices

• All the above are reasons for why stagflation existed during the 1970s

Who was Chairman of the Federal Reserve in 1979?

• Jerome Powell

• Janet Yellen

• Ben Bernake

• Paul Volcker