In 1971, United States imported more goods than it exported. It was the end of golden age for United States when this inflation and high unemployment came through. During 1970s, America went through both high inflation and unemployment at the same time. During 1970s because of support of Israel in its war with Egypt, Arab countries that exported oil shut down its sail to United States. This caused rise of oil price, therefore gasoline price doubles and other products. It led to inflation, resulting decreece price of deman product. Which led to layoffs which resulted in higher unemployment. Also when diplomatic relationship with Iran ended, oil supplies were reduced again and led to much higher oil prices, increase of unemploymen and inflation.