In 1981 Fed Policy Created a Severe Recession Because the Fed

question 17

Multiple Choice

In 1981 Fed policy created a severe recession because the Fed

• A) increased aggregate supply to reduce the inflation rate.
• B) undertook a surprise reduction in the inflation rate.
• C) announced a credible inflation reduction program.
• D) undertook a surprise increase in the inflation rate.
• E) announced a credible inflation increase program.