The severity of the 1982 recession has been attributed to

Question

Quizplus · Accepted Answer

The severity of the 1982 recession has been primarily attributed to the Federal Reserve System's tight monetary policies undertaken by Chair Paul Volker. The Fed raised interest rates to control inflation, which resulted in a recession due to decreased economic activity and increased job losses. The Reagan administration's tax cuts and the deficits in our balance-of-payments accounts also contributed to the recession, but they were not the primary cause. The OPEC-sponsored oil embargo and rapidly falling price level caused by large federal budget deficits were not significant factors in the 1982 recession.

The Severity of the 1982 Recession Has Been Attributed to