In the early 1980s, US economic policy was directed toward reducing inflation.What would you assume about inflation and unemployment during this period?

Question

Quizplus · Accepted Answer

When economic policy is directed toward reducing inflation, it often involves raising interest rates and decreasing government spending. These actions can lead to a decrease in the money supply and slower economic growth, which can result in high unemployment. However, as the government pursues these policies over time, inflation will eventually begin to fall. Therefore, during this period, it is likely that inflation fell and unemployment increased as a result of the economic policy decisions.

In the Early 1980s, US Economic Policy Was Directed Toward