The stagflation in the United States during the 1974–1975 period can be attributed to
A. increases in real GDP due to high levels of defense spending.
B. tight monetary and fiscal policies of the Nixon–Ford administrations.
C. rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls.
D. budget deficits by the federal government and increasing trade deficits by the United States.
Answer: C
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