Why Was Fiscal Policy NOT Helpful in Overcoming Stagflation in the 1970s

question 132

Multiple Choice

Why was fiscal policy NOT helpful in overcoming stagflation in the 1970s?  

• A) because fiscal policy is aimed at both aggregate demand and aggregate supply, but the problem was related to demand only 
• B) because fiscal policy is aimed at both aggregate demand and aggregate supply, but the problem was related to supply only 
• C) because fiscal policy is aimed at aggregate demand only, but the problem was related to aggregate supply 
• D) because fiscal policy is aimed at aggregate supply only, but the problem was related to aggregate demand

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