Question

By the end of the 1970s, the United States was in economic decline, in part because of:

a) Increased government spending
b) The energy crisis
c) Excessive military expansion
d) Strong international trade

Answer 1

The United States' economic decline in the late 1970s was influenced by the energy crisis, particularly the Arab oil embargo and increased competition from abroad in industrial sectors. This led to high gas prices and stagnation. The response included efforts for regional economic integration, like the Canada-U.S. Free Trade Agreement.

Step-by-step explanation:

By the end of the 1970s, the United States was experiencing an economic decline due in part to various factors, including the energy crisis and increased global competition. The Arab oil embargo, as retaliation for U.S. support of Israel during the 1973 Arab-Israeli war, led to gas shortages and spiked oil prices, stressing the U.S. economy heavily. Moreover, increased competition from Japan and Western Europe in major industrial sectors, such as steel and automobile production, caused a downturn in U.S. manufacturing. This economic struggle was further compounded by an overdependence on foreign oil, leading to high gas prices and economic stagnation. In response to these challenges, the United States and Canada eventually negotiated the Canada-U.S. Free Trade Agreement (Canada-US FTA) in 1988 to eliminate barriers to trade.