In order to change inflationary expectations in 1979,the Fed's monetary policy under Paul Volcker's leadership resulted in ________ and ________.

Question

Quizplus · Accepted Answer

Paul Volcker's monetary policy resulted in disinflation, which means a decrease in the rate of inflation. However, in order to achieve this goal, the Fed had to implement tight monetary policies which led to high unemployment. The combination of disinflation and high unemployment is represented by choice A.

In Order to Change Inflationary Expectations in 1979,the Fed's Monetary