Question

Describe the causes of the boom and bust cycles of the Texas oil industry.

Answer 1

Possible Answer: Boom cycle contributors include: Several successful oil drillings in South, North-Central, and East Texas New innovations: drilling and oil refinery Success of the automobile industry Things that led to a decline, or bust, in the industry include: An oil surplus that led to a decrease in oil prices Environmental hazards Dry wells

Step-by-step explanation:

Answer 2

Booms and busts in the economy are caused by an expansion of the money and credit supply. An expansion causes an inflationary “boom”, a period of rapid expansion, production, and job creation.

Step-by-step explanation:

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