The energy price shock in 1974 and 1975 caused a drop in real output and an increase in prices. Real output decreased by two percent in 1974 and five percent in 1975, while prices went up by four percent in 1974 and two percent in 1975. The study used a model of the U.S. economy to show how energy impacts production. The researchers also looked at ways monetary and fiscal policies could have lessened the effects of the energy shock.