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ycow [4]
4 years ago
10

This graph shows changes in gross domestic

History
1 answer:
sashaice [31]4 years ago
6 0

Answer:

The economy plummeted sharply in 1973

Explanation:

The economy actually grew in 1973 by 5.65%, but then it fell sharply, and fell byn -0.5 in 1974.

The reason for this drop was the 1973 oil crisis, after several Oil-exporting Arab Nations, launched an embargo against countries that had supported Israel in the Yom Kippur War, among these, the United States.

This embargo was very negative for the American economy, because the United States depended on these Arab Nations for its oil supply. Oil became scarce, which made energy, fuel, gasoline, and so on, more expensive. This naturally depressed economic activity because producing goods or services was now more expensive, or even impossible.

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