Question

Which of the following was a major problem for the United States in the late 1970s? A. The collapse of pro-U.S. communist states B. Court rulings against contraception rights C. Israeli radicals taking U.S. hostages D. Government programs discouraging stagflation

Answer 1

Option C, government programs discouraging stagflation is the right answer.  

American economy in the 1970's became stagnant as America stopped fighting in the Vietnam War. Hence, the United States began to recover from the Vietnam War. The rate of inflation was high, and unemployment was also at record-breaking during this time. The U.S. economy was a blend for most of that decade. Hence, government programs discouraging stagflation was one of the major problems of America during the 1970's