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During the late 1970s and the first part of the 1980s, the Fed seemed to react...

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Economics

During the late 1970s and the first part of the 1980s, the Fedseemed to react in a counterintuitive manner to the 1970s oilshocks. Explain the reasoning behind the Fed's policy decisions andthe effect that they had on the economy?

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As a result of the oil shocks from 1973 to 1979 the shock of supply was negative in the 1970s This led to a state of stagflation in which both high inflation and high unemployment were    See Answer
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