Examine the sequence showing the cause of the United States recession in the 1970s.
A sequence of three bubbles with arrows pointing downward showing the cause of the U S recession in the 1970's. The top bubble is labeled The high inflation caused businesses to have lowered profits. The middle bubble is blank. The bottom bubble is labeled The economy stalled.
Which statement belongs in the middle of the sequence?
Borrowing money was harder due to higher costs.
Prices of goods increased in order to increase profits.
Workers lost their jobs because businesses had less need for them.
More workers were hired as businesses increased production.
