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Causation and Consequences
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U.S. History
11.5 Causation and Consequences
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The 1970s economy experienced high inflation and slow growth at the same time. Which explanation best identifies why this was difficult for policymakers?
A
High inflation and slow growth were easy to solve because they always respond to the same policy.
B
Oil shocks, global competition, and inflation challenged policies designed mainly for either recession or inflation alone.
C
Oil shocks lowered production costs, making inflation impossible.
D
Global competition had no effect on U.S. industry or wages.
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