During the period known as the Volcker disinflation

Question

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During the Volcker disinflation, which was a period in the early 1980s when the Federal Reserve, under Chairman Paul Volcker, raised interest rates to combat high inflation, all of the listed effects occurred. The unemployment rate did indeed rise to 10.8 percent, real GDP fell below potential GDP as the economy slowed, investment and net exports declined due to higher interest rates and a stronger dollar, and the real interest rate rose significantly as nominal rates were increased to fight inflation.

During the Period Known as the Volcker Disinflation