Explain the causes of the stagflation of 1973 and 1979 and show any movements in the PPF due to the Terrorist attacks on World Trade Center.
1. what were some of the causes of the stagflation of 1973 and 1979? Illustrate in what ways were these episodes of stagflation different from the great depression of the 1930s?
2. Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- or long-term productivity in the United States? Explain your response and show any movements in the PPF.