The stagflation of the US economy in the early 1970s was characterized by high unemployment and low inflation.
low unemployment and high inflation,
low unemployment and low inflation,
high unemployment and high inflation.

High unemployment and high inflation.

Explanation:

The US economy in the early 1970s saw the highest inflation and unemployment. The reason for the inflation and unemployment was stagflation as the banks expand the money supply at the same time they constrain supply. There was an economic and energy crisis at that time due to the increase in oil prices.

the answer is the government.