Injections of monetary demancl, which in the r95os had produceda rise in real production and a fail in unemployment before causinga modest rise in prices, noly went directlv into high rates of inflationwithout so much as a blip on the charts for production and unemploy-men
In the paragraph about inflation, why did government spending increase prices but not production in the 1970s, unlike in the 195?
The relative worsening of our economic position was disguised by therising afflueuce of the West as a whole
Thatcher explains that Britain’s problems were hidden because most Western countries were becoming richer after the war. Even though Britain’s economy was growing, other countries were growing faster. This made Britain’s situation look better than it really was. When the economic boom of the post-war years slowed down in the 1970s, Britain’s weaknesses became clear.