The Recession of 1973-1975 Was Unusual in That Both Inflation

question 130

Multiple Choice

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

• A)inward shift of the aggregate demand curve.
• B)outward shift of the aggregate supply curve.
• C)inward shift of the aggregate supply curve.
• D)outward shift of the aggregate demand curve.

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Definitions:

Bonds

Debt securities issued by entities such as corporations or governments to raise funds, with the promise to repay the principal along with interest at a future date.

Maturation

The process of reaching full development or the final stage of development, often used in contexts such as biology, chemistry, or finance.

Current Yield

A financial term describing the annual return on an investment, such as a bond, based on the investment's current market price.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental.