1973—A Year on Inflation
The U.S. economy suffered a major setback against inflation during 1973: Average prices, as measured by the GNP price deflator, rose at a 6.8% annual rate over the first three quarters of the year. From 1965 to 1972 prices rose at an average 4% rate. Fiscal developments became less expansive in 1973, interest rates rose markedly, and the growth rate of the monetary base slowed slightly.
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