Question

What resulted in a recession in the United States that lasted from 1973-1975?

Answer 1

The recession in the United States from 1973-1975 was primarily caused by the 1973 oil crisis, when members of the Organization of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo. This led to a severe increase in oil prices, which caused inflation and economic stagnation. Additionally, government spending due to the Vietnam War contributed to inflation. The combination of these factors resulted in the recession.

Step-by-step explanation:

Answer 2

The recession in the United States from 1973-1975 was a result of multiple factors, including the oil crisis, monetary policy, and economic challenges such as high unemployment and low business investment.

Step-by-step explanation:

The recession in the United States that lasted from 1973-1975 can be attributed to several factors. One significant factor was the oil crisis in 1973, when OPEC (Organization of Petroleum Exporting Countries) imposed an oil embargo on the US in response to its support for Israel during the Yom Kippur War. This led to a sharp increase in oil prices, which in turn caused inflation and reduced consumer spending. Another contributing factor was the monetary policy pursued by the Federal Reserve, which aimed to combat inflation by raising interest rates, but ended up exacerbating the recession. Additionally, there were other economic challenges such as high unemployment and low business investment during this period.