Which of the following the best explanation of the cause of the US recession that lasted...

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Which of the following the best explanation of the cause of the US recession that lasted from July 1981 until November 1982? There was a large and persistent price shock. The Fed Chair had an inflation target that was lower than 2%. The Fed was acting on an inaccurate real-time estimate of the size of the GDP gap. O The economy was adjusting to a decline in potential GDP.. Which of the following the best explanation of the cause of the US recession that lasted from July 1981 until November 1982? There was a large and persistent price shock. The Fed Chair had an inflation target that was lower than 2%. The Fed was acting on an inaccurate real-time estimate of the size of the GDP gap. O The economy was adjusting to a decline in potential GDP..

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The correct answer is option d The economy was adjusting to a decline in potential GDP The last opti... View the full answer