The recessions of the 1970s are often attributed to
A)declining inflation expectations.
B)an increase in oil prices.
C)declines in the price of stock.
D)decreases in the money supply.

Question

Quizplus · Accepted Answer

The recessions of the 1970s are often attributed to an increase in oil prices. The Organization of Petroleum Exporting Countries (OPEC) raised the price of oil in 1973, which led to higher prices for gasoline and other goods, causing inflation and slowing down economic growth. This was followed by another oil price shock in 1979, which further worsened the recession.

The Recessions of the 1970s Are Often Attributed to