The supply-side shocks that affected the United States in 1973 and 1979 were the result of

Question

Quizplus · Accepted Answer

The supply-side shocks in 1973 and 1979 were caused by OPEC's policies regarding the availability and price of crude oil. OPEC, which stands for the Organization of the Petroleum Exporting Countries, is a group of oil-producing countries that can exert significant control over the global oil market. In 1973, OPEC implemented an oil embargo on countries that supported Israel during the Yom Kippur War, and in 1979, OPEC raised the price of oil in response to political developments in Iran. These actions led to significant increases in the price of oil and caused economic disruptions and inflation in many countries, including the United States.

The Supply-Side Shocks That Affected the United States in 1973