How did the embargo by the organization of petroleum exporting countries contribute to stagflation problems in the early 1970s?

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Tyree Burch

9 November, 10:29

How did the embargo by the organization of petroleum exporting countries contribute to stagflation problems in the early 1970s?

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Ming · Answer 1

The embargo by the organization of petroleum exporting countries contributed to stagflation problems in the early 1970s in that it drove oil prices way up, which increased inflation on the prices and led to the "cutting back" of oil use in the west.