asked 134k views
2 votes
Please help ive gotta pass this quiz. D IS NOT RIGHT

How did the shortage of oil from OPEC nations affect the United States?
It created more unemployment.
It lowered unemployment.
It helped businesses to diversify.
It caused oil production to rise.

asked
User Se
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2 Answers

4 votes
A. It created unemployment
answered
User HQCasanova
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9.5k points
4 votes

The correct answer is: "It created more unemployment. "

The shortage of oil from OPEC countries that took place in 1979, consisted on a large increase in oil prices, which affected to most 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.

answered
User Vesnog
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8.0k points
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