In the 1970's the Federal Reserve Responded to an Adverse

Multiple Choice

In the 1970's the Federal Reserve responded to an adverse supply shock.Its policy made

A) the recession that followed smaller and so provided a more favorable tradeoff between inflation and unemployment.
B) the recession that followed smaller,but in doing so produced a less favorable tradeoff between inflation and unemployment.
C) the recession that followed larger,but in doing so provided a more favorable tradeoff between inflation and unemployment.
D) the recession that followed larger and also produced a less favorable tradeoff between inflation and unemployment.