The Liberals entered the election campaign with a 10-point lead over the Progressive Conservatives, but the spirit of Trudeaumania had worn off, and a slumping economy and rising unemployment hurt his party.

Stanfield's Tories tried to capitalize on the public's perception that the Liberals were mismanaging the economy with the slogan, "A Progressive Conservative government will do better.

The Liberals won a minority government, with the New Democratic Party, led by David Lewis, holding the balance of power.

Requiring NDP support to continue, the Trudeau government would move left politically, including the creation of Petro-Canada.

Caouette, who had contested the previous two elections as leader of the breakaway Quebec-based Ralliement créditiste, had successfully taken over the leadership of the original western-based party and overseen the reintegration of the two factions.

He successfully held on to the seats he had previously won under the RC banner, but these were the only ridings Social Credit managed to win as it continued to lose support outside Quebec.