Limited government: The government has only the powers that constitution gives it.
Rule of law: The Government and its officers are always subject to the law, never above it.
Federalism: The sharing of power between federal and state government.
Separation of powers: Refers to the division of government responsibilities into distinct branches to limit any one branch from exercising the core functions of another. The intent is to prevent the concentration of power.
Checks and balances: each branch of the national government can check the actions of the other two branches.
Popular sovereignty: The concept that political power sets with the people who can create, alter and abolish government. People express themselves through voting and free participation in government.
Your 2nd and 3rd options are the correct answers. Monarchies were not quickly changed into democracies because it was much more complicated to change a government. You can't do that overnight.
Inflation and unemployment rose to their peaks by the end of the 1970s. This happened because the fiscal deficit was largely financed by the federal finances. Further, an energy crisis was being faced due to the increase in the price of crude oil. This led to overall inflation and economic instability.
