The 1973-1975 recession was caused by

Question

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The quadrupling of oil prices by OPEC in 1973-1974 led to sharp increases in inflation and unemployment, as businesses were hit with higher input costs and reduced demand for their products due to consumers cutting back on spending. This oil shock also triggered a global economic slowdown, as many countries were heavily dependent on oil imports and saw their trade deficits worsen. The Fed's response to the recession was initially to maintain an easy monetary policy, but by 1974-1975 it was forced to tighten policy to combat rising inflation. High tax rates on capital may have also contributed to business pessimism, but this was likely a secondary factor compared to the oil shock.

The 1973-1975 Recession Was Caused by