Changes in the Economy

Question 1

stagflation

Answer 1

• high unemployment
• high inflation
• no economic growth
• nothing really gets better or worse
• the economy is stagnant (nothing is moving in any direction)
• the economy stalls

Question 2

cost of living

Answer 2

• amount of money it takes to live (home, food, water, etc.)

- 1970s - cost of living increases by a factor of three

Question 3

environment (earth day - 1970)

Answer 3

• the EPA is created to protect the environment
• businesses are required to clean up their factories
• clean up costs money - product prices increase in the store

Question 4

OPEC

Answer 4

• organization of petroleum exporting countries (oil)
• middle east
• the US is NOT a member of OPEC
• 1970s - OPEC cuts off oil to the US due to conflict in the Middle East in which the US sided with Israel
• gasoline shortage in the US - limit put on how many gallons of gasoline people could purchase
• shipping is impacted in the US
• cost of shipping; cost of gasoline goes up (impact on economy)

Question 5

remember this…

Answer 5

stagflation is the non-movement of the economy. picture a stale puddle of water that just sits there. It doesn’t get better, or worse, but it also doesn’t smell or look desirable - welcome to the economy of the 1970s

Question 6

a gas shortage in the US during the 1970s was caused by

Answer 6

OPEC

Question 7

roe v. wade decided that abortion in the first trimester was:

Answer 7

legal