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What economic conditions or problems led to a stagnant economy during the 1970s? List at

least 2 reasons for a stagnant economy.

User Cereal
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1 Answer

1 vote

Answer:

High unemployment rate

High inflation

Step-by-step explanation:

The 1970s was characterized by stagnant economy. This was as a result of factors such as high unemployment rate and high inflation.

High unemployment rate means most of the citizens don’t work and it reduces the human labour which is an important determinant for economic growth. The citizens work and the countries collect taxes to boost and finance the economy.

High inflation rate is the high rate of goods and services being bought or rendered. It is synonymous with a bad economy and was also responsible for the economic problems.