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How Did The Recession Of The Economy Of 1973-1975

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2. Recession of 1973-1975 in USA: The economy had again started to grow post World War II. This recession had put all economic expansion to a halt. Being a stagflation (high unemployment, coupled with high inflation), it created an economic stagnation in much of western countries.

The economy report of President of USA read-
The economy is in a severe recession. Unemployment is too high and will rise higher.
In USA, it remained active during Nov 1973 (President – Richard Nixon) to Mar 1975 (President – Gerald Ford). During this 16 months’ period, the unemployment rose to 8.8%.

Causes: The recession of 1973-1975 was not a normal one. It was sparked by an oil shortage. The OPEC (Organization of petroleum exporting countries) declared an oil

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