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A major cause of inflation and consumer worry in the 1970s was the surging cost of?
Wiki User
∙ 13y ago
Oil. (:
Wiki User
∙ 13y ago
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How consumer spending may cause inflation to rise?
Inflation occurs when people aren't spending money, thus meaning if a consumer is spending money the prices will generally be lower, also if there is a high demand for that product
The term stagflation refers to?
the combination of high inflation and high unemployment during the early 1970s. the combination of high inflation and high unemployment during the early 1970s. Stagflation is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time.[1] The portmanteau "stagflation" is generally attributed to British politician Iain Macleod, who coined the term in a speech to Parliament in 1965.[2][3][4] The concept is notable partly because, in postwar macroeconomic theory, inflation and recession were regarded as mutually exclusive, and also because stagflation has generally proven to be difficult and costly to eradicate once it gets started. Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable.[5][6][7] This type of stagflation presents a policy dilemma because most actions to assist with fighting inflation worsen economic stagnation and vice versa. Second, both stagnation and inflation can result from inappropriate macroeconomic policies. For example, central banks can cause inflation by permitting excessive growth of the money supply,[8] and the government can cause stagnation by excessive regulation of goods markets and labor markets;[9] together, these factors can cause stagflation. Both types of explanations are offered in analyses of the global stagflation of the 1970s: it began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a runaway wage-price spiral.[10] the combination of high inflation and high unemployment during the early 1970s. Answer: the combination of high inflation and high unemployment during the early 1970s
Why did farmers pushed for currency reform?
They hoped to cause inflation.
Is it true middlemen cause price inflation?
Depends who the middleman is
Did the price revolution cause increased global capitalism and inflation?
yes
How consumer spending may cause inflation to rise?
Inflation occurs when people aren't spending money, thus meaning if a consumer is spending money the prices will generally be lower, also if there is a high demand for that product
Why is my 2000 Jeep wrangler 4.0 liter surging or missing while driving?
The most common cause for surging is a vacuum leak
Can a bad alternator affect dash lights?
Can cause surging and/or flickering
Can an over lean fuel mixture can cause hunting and surging?
yes
Can over lean fuel mixture can cause hunting and surging?
yes
What can cause a surging idle on a 1999 Ford Explorer 4L V6?
It is important to know the causes of problems in a vehicle. A surging idle can be cause by a bad o2 sensor, bad fuel pump, or a computer starting to go bad.
Why is engine surging on a Briggs stratton 3 and a half hp engine with a primer bulb on a push mower?
Most common cause of surging is a dirty/clogged air filter.
Will incorrect tire inflation cause tire wear?
Yes. Low pressure will cause edge wear. Over inflation will cause center wear.
What do monetarians believe regarding inflation?
the main cause of inflation is the growth of money supply
Can inflation change a business cycle?
yes because less employment cause inflation
What would cause a computer tower to make a surging noise rather than a constant humming noise as it usually does?
A computer tower may make a surging noise rather than a constant humming noise if the case's screws are not properly tightened. Another reason for such a surging noise is the imminent failure of a fan.
What the cause of demand pull inflation?
Consumers want more and more goods and services. Stronger consumer demand for goods with a limited or fixed supply. A price level increase due to an increase in aggregate demand.
