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2Q The American Dream: Reality and Illusion, 1945–1980

America by 1980 and the Election of Reagan

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  • Component 2

Overview

Recall questions on the doubts about American power by 1980, stagflation, unemployment, energy and industrial decline, social change, and why Reagan beat Carter, including his promises and the Moral Majority.

What you need to know

Answer each one before you reveal it.

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Key term

How did inflation affect the American economy by 1980?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What factors led to questioning of American superpower status by 1980?

    Model answer

    Defeat in Vietnam, the Iran hostage crisis, Soviet expansion, and perceived military weakness all contributed to questioning American superpower status.

  2. 2

    What is stagflation, and why was it a problem for the US economy by 1980?

    Model answer

    Stagflation is the combination of stagnant economic growth with high inflation, creating a difficult economic situation that traditional policies struggled to address.

  3. 3

    How did inflation affect the American economy by 1980?

    Model answer

    High inflation eroded purchasing power and created economic instability.

  4. 4

    What was happening to employment levels in the US economy by 1980?

    Model answer

    Rising unemployment was one of the significant economic problems facing America.

  5. 5

    How did energy issues contribute to American economic problems by 1980?

    Model answer

    Energy crises disrupted the economy and contributed to inflation and economic uncertainty.

  6. 6

    What was happening to American industry's position in the global economy by 1980?

    Model answer

    American industrial competitiveness was declining relative to foreign competitors.

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