The period from 1979 to 1987 is an example of
A)the large effect monetary policy can have on potential GDP.
B)how monetary policy can be managed so it causes only a temporary growth slowdown.
C)why monetary policy doesn't always work.
D)how monetary policy brings about disinflation.
E)how monetary policy results in reinflation.

Question

Quizplus · Accepted Answer

The period from 1979 to 1987 is notable for the Federal Reserve's efforts, under Chairman Paul Volcker, to reduce inflation through tight monetary policy, which successfully brought about disinflation.

The Period from 1979 to 1987 Is an Example of