The Great Stagflation of 1973-1980 was characterized by a high rate of inflation combined with the recession or stagnation of economic output that occurred during this time period. A major cause was the increase in oil prices

Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open market and borrowed reserves is zero?

A) It will cause both the equilibrium federal funds rate and equilibrium quantity of reserves to fall. B) It will cause the equilibrium federal funds rate to fall, but no change in the equilibrium quantity of reserves. C) It will cause the equilibrium federal funds rate to rise, but no change in the equilibrium quantity of reserves. D) It will cause the equilibrium federal funds rate to rise and the equilibrium quantity of reserves to fall.

What has been TRUE about inflation in the United States since 1960?

A. Inflation rates have been consistently positive. B. Negative inflation, or deflection, has occured half of the time. C. The annual rate of inflation has varies around zero percent. D. The nation has experienced persistent deflation.