The disinflation policies of the early 1980s were not costly due to
A) central bank independence.
B) sticky prices.
C) high government budget deficits.
D) all of the above.

Question

Quizplus · Accepted Answer

The disinflation policies of the early 1980s were costly due to sticky prices, which delayed the adjustment of the economy to lower inflation rates, leading to higher unemployment and output losses.

The Disinflation Policies of the Early 1980s Were Not Costly