A graph titled Change in U S Unemployment and Inflation from 1971 to 2001 has the year on the x-axis and percentage change on the y-axis, from 0 to 8 percent. From 1971 to 1976, both unemployment rate and inflation increased. From 1981 to 2001, both decreased.
According to the graph, 1971 to 1976 was a period of stagflation due to

rising unemployment and inflation.
falling unemployment and inflation.
rising unemployment and falling inflation.
falling unemployment and rising inflation.

According to the graph of the given case, the main reason of occurring the stagflation between 1971 and 1976 was due to the result of increased unemployment and inflation.

What is inflation?

Inflation means the increment in the price of goods and services crossways to an economy When the general price level rises, each unit of currency buys fewer products and services; as a result, inflation matches a failure of money's buying power.

According to the graph of given case, it is understandably comprehended that from year 1971 to 1976, there is an unremitting addition in the price of goods and services, and as a result of that unemployment level also raises.

Therefore, option A is correct.

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