Question

Monetary policy created the 1980-82 recession by a. raising interest rates to lower spending, inflation and inflation expectations b. lowering interest rates to lower spending, inflation and inflation expectations c. moving the economy off the Gold Standard following the 1970s oil shocks d. raising taxes to take money out of the economy

Answer 1

Monetary policy created the 1980-82 recession by a. raising interest rates to lower spending, inflation and inflation expectations

Step-by-step explanation:

the economic recession was that of 1981-82, where the unemployment rate was close to 11%. Unemployment during this period was widespread, but manufacturing, construction and automotive industries were specifically affected. Producers of goods accounted for only 30% of total employment at that time, but suffered 90% of job losses in 1982.