Which of the Following Most Significantly Contributed to the 1970s

question 75

Multiple Choice

Which of the following most significantly contributed to the 1970s' and the early 1980s' stagflation in Canada?

• A)An appreciation of the Canadian dollar
• B)A sharp drop in the prices of farm products
• C)A dramatic increase in energy prices
• D)Rising productivity in manufacturing

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved due to market inefficiencies.

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different consumers, based on their ability to pay, in order to maximize profits.

Privatizing

The act of moving control and ownership from the government to private entities, including businesses, enterprises, agencies, or public services.