Question

What conclusion can be made about the effect of the 1970s recession and inflation on people’s spending on food and other items?

People had to pay less for food than other items.
People had to pay more for other items than food.
People had to pay more for food than other items.
People had to pay the same amount for other items and food.

Answer 1

Based on the economic conditions of the 1970s, characterized by recession and high inflation, the most likely conclusion is that **people had to pay more for food than other items**. During periods of high inflation, food prices tend to rise significantly, often faster than prices for non-essential goods. As essential items like food become more expensive, consumers may prioritize their spending on food, potentially leading them to cut back on other discretionary spending. Therefore, the conclusion that aligns with the increased cost of essentials during this period is that people had to pay more for food than other items.