In Response to a Rapid Deceleration in the Growth Rate

Multiple Choice

In response to a rapid deceleration in the growth rate of nominal GDP in the early 1980s,

A) inflation declined slowly,thus giving empirical support to the proponents of the adaptive expectations approach.
B) inflation declined slower than the deceleration in nominal GDP and real output actually declined.
C) inflation declined slower than the deceleration in nominal GDP and the output ratio actually declined.
D) All of the above are correct.