Question

In terms of inflation, the U.S. economy performed the best from:

A) 1991–1996.
B) 1973–1977.
C) 1978–1982.
D) 1968–1972.'

Answer 1

In terms of inflation, the U.S. economy performed the best from C) 1978-1982, during a period of economic growth and personal income. Inflation had doubled between 1967 and 1973, leading to stagflation. The periods of lowest inflation were during the Great Depression.

Step-by-step explanation:

In terms of inflation, the U.S. economy performed the best from C) 1978-1982.

The late 1970s saw a resumption of economic growth and personal income, although these increases were modest in comparison with the rapid gains of developing economies. Inflation had doubled between 1967 and 1973, while unemployment remained high at 8%. This period of rising inflation and unemployment, known as stagflation, led economists to create a new label for the phenomenon. In the past, prices had increased when the economy was doing well but fell during periods of recession.

In contrast, the periods of lowest inflation in the United States were during the Great Depression of the 1930s, when there was deflation. In recent decades, the annual inflation rate in the U.S. economy has typically been around 2% to 4%.