In 1973,1979 and 2007,the U.S.economy was hit by ________.
A)the collapse of the financial sector
B)the assassination of a Federal Reserve Board member
C)three major aggregate supply shocks
D)the after-effects of the process of creative destruction

Question

Quizplus · Accepted Answer

The U.S. economy was hit by three major aggregate supply shocks in 1973, 1979, and 2007. In 1973 and 1979, there were oil price shocks that caused significant inflation and slowed economic growth. In 2007, there was a housing market crash that led to a financial crisis and recession. None of the other answer options accurately describe these events.