Which of the following best describes U.S. economic conditions in the 1980s?
A) Deflation occurred because the Fed reacted too much to AD shocks.
B) High inflation occurred because the Fed reacted too little to AD shocks.
C) High real growth occurred because of the deliberate actions of the Fed.
D) Disinflation occurred because of the deliberate actions of the Fed.

Question

Quizplus · Accepted Answer

Disinflation occurred in the 1980s because of the deliberate actions of the Fed. The Fed implemented tight monetary policy to combat the high inflation of the 1970s, which led to a period of disinflation in the 1980s.

Which of the Following Best Describes U