The economic slump in the 1970s looked different from the slump at the beginning of the Great Depression because it was:
A) the result of a lack of confidence that led businesses and consumers to spend less.
B) largely caused by events in the Middle East that led to sudden cuts in world oil production and soaring prices for oil.
C) the direct result of a contractionary monetary policy.
D) the result solely of a negative demand shock.

Question

Quizplus · Accepted Answer

The economic slump in the 1970s was largely caused by events in the Middle East that led to sudden cuts in world oil production and soaring prices for oil, which had a negative impact on many economies around the world. This was different from the slump at the beginning of the Great Depression, which was primarily caused by a collapse in demand and a lack of confidence in the banking system.

The Economic Slump in the 1970s Looked Different from the Slump