Hello,the answer is given in red, but please give step by step explanation, please dont just repeatanswer, eg explain the formula used, if diagrams helps you to explain, please do use it, thank you!

Q5. Many Western countries had both higher inflation and unemployment in 1975 than in 1965 ("stagflation" = economic stagnation + inflation). (a) Can you suggest some reasons why inflation was higher in 1975 than 1965? Inflation increased in the late 1960s and early 1970s so people came to expect high inflation. Also, oil prices increased after the Organization of Arab Petroleum Exporting Countries declared an embargo in 1973, roughly quadrupling oil prices within a year. This then fed through into other prices. (b) Can you suggest some reasons why unemployment was higher in 1975 than 1965? This was partly covered in the tutorial sheet on unemployment. The natural rate of unemployment appears to have increased compared to the 1960s, maybe because of more generous unemployment benefits, labour market regulation, and strong unions. Also, there was a cyclical downturn after the boom in 1973-74 and the oil price increase