The past year was one of significant economic turnaround, with the influence of monetary and fiscal developments superimposed on the continuing transition from the economic disarray of the two previous years. In 1973 and 1974 the economy was subjected to a sharp rise in the cost of energy, crop failures, price controls, and the implementation of environmental, safety, and consumer protection programs which directly reduced productive capabilities across the economy. As a result, total real output declined from the fall of 1973 to the fall of 1974, even though growth of aggregate demand for goods and services slowed only moderately.