What two major factors caused the recession of the early 1980s?
a.
b.
Answer (2)
The recession of the early 1980s was mainly caused by the Federal Reserve's tightening of monetary policy, which raised interest rates to combat inflation, and the global oil crisis following the Iranian Revolution that led to skyrocketing oil prices. Together, these factors led to decreased consumer and business spending, resulting in economic downturns and high unemployment. This combination created a difficult economic climate for the United States during that period.
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The recession of the early 1980s was significantly influenced by the Federal Reserve's tightening of monetary policy and the global oil crisis. High interest rates diminished consumer and business spending, while soaring oil prices increased operational costs, exacerbating the economic downturn. These two factors combined created a challenging economic environment with elevated unemployment levels. ;
