How did the 1979 oil shock affect the US economy?

It caused inflation to rise and the economy to slow.

It slowed inflation and the economy grew.

It helped American businesses to grow.

It lowered oil prices greatly over time.

The 1979 oil stock consisted on a large increase in oil prices, which affected many industries where oil was the principal energy source. As the resources used in production processes became more expensive, so did the final products generated. This inflation slowed down economic growth as people started to demand a lower amount of the more expensive products, aggregate demand levels dropped and so did employment levels.

Tundexi Tundexi · Answer 2 · 2022-04-20T17:19:43+02:00

The adverse effect of the oil shock was an rise in inflation and cause the economy to slow down as majority of sector depends on fuel for operation.

What was the Oil shock?

The oil crisis occurred when the members of the OAPEC led by Saudi Arabia proclaimed an oil embargo on its oil.

This created a spike in price and casued a fuel shortages and long lines at gas stations in the U.S.

Hence, the effect of the oil shock was an rise in inflation and cause the economy to slow down as majority of sector depends on fuel for operation.

Therefore, the Option A is correct

How did the 1979 oil shock affect the US economy? It caused inflation to rise and the economy to slow. It slowed inflation and the economy grew. It helped American businesses to grow. It lowered oil prices greatly over time.

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What was the Oil shock?

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How did the 1979 oil shock affect the US economy?

It caused inflation to rise and the economy to slow.

It slowed inflation and the economy grew.

It helped American businesses to grow.

It lowered oil prices greatly over time.