WHH MU#15 Notebook 33 Crisis of the 1970s: Stagflation, Oil, Rev

What phenomenon emerged in Western economies by the early 1970s?

• Deflation

• Economic boom

• Stagflation

• Hyperinflation

What were the characteristics of stagflation as mentioned in the text?

• Low unemployment and high wages

• High unemployment, stagnant wages, and price deflation

• High unemployment, stagnant wages, and price inflation

• High employment, increasing wages, and stable prices

What was the consequence of high unemployment on wages during the stagflation period?

• Wages increased rapidly

• Wages remained the same as employers hired desperate unemployed

• Wages decreased due to high inflation

• Wages were indexed to inflation

Which factors contributed to the increased cost of production during the stagflation period?

• Decreased safety and environmental regulations

• Great Society tax decreases

• Great Society tax increases and additional safety and environmental regulations

• Reduction in the cost of raw materials

Whose theories were employed in the late-1970s and 1980s to address the problems of stagflation?

• John Maynard Keynes

• Adam Smith

• Milton Friedman

• David Ricardo

What event in 1973 led to the Arab nations of OPEC halting oil sales to the West?

• The signing of a peace treaty

• The 1973 Yom-Kippur War

• The establishment of OPEC

• A global economic recession

What was the reaction in the West to the plummeted supply of gas during the 1973 Oil Crisis?

• Implementation of renewable energy sources

• Decrease in gas prices

• Use of price controls

• Expansion of domestic oil production

During the 1970s, what was the relationship between Western oil companies and Muslim states?

• Western oil companies were banned from operating in Muslim states

• Western oil companies operated profitably in Muslim states

• Western oil companies had no interest in Middle Eastern oil

• Western oil companies solely relied on domestic oil production

What was a common practice of the West in Middle Eastern politics before the 1973 Oil Crisis?

• Promoting democratic elections

• Funding dictators and pro-Western regimes

• Encouraging the formation of independent states

• Supporting the nationalization of oil industries

Following World War II, which country's government was supported by Western powers?

• Iraq

• Saudi Arabia

• Iran

• Russia