The OPEC oil embargo of 1973 (an event marked by a reduction in the production of oil, a reduction in oil exported to the United States, and an increase in oil prices in the United States) may have contributed to the expansion of 1973 and the in real GDP caused by a (n) in aggregate supply.

A) True

B) False

Question

Giovanny Ramirez

History

3 April, 13:44

The OPEC oil embargo of 1973 (an event marked by a reduction in the production of oil, a reduction in oil exported to the United States, and an increase in oil prices in the United States) may have contributed to the expansion of 1973 and the in real GDP caused by a (n) in aggregate supply.

A) True

B) False

+2

Answers (1)

Know the Answer?

Dennis Pham · Answer 1

False

Explanation:

1973 marked the beginning of a recession, and the crisis of the dollar-gold standard. It would lead to the rise of inflation, and the crisis on the keynesian consensus of the Welfare State, eventually leading to the rise of Friedman monetarist theories and finally the establishment of strong anti-regulation governments in Britain and the US (Margaret Thatcher and Ronald Reagan)