Title: QUIZ: The Cost of the Great Inflation: More Frequent and Deeper Recessions
Course: FRED Q&A Full Course > Section: FRED® Q&As -- Inflation

Q: According to the article, during which period did the "Great Inflation" occur?
- 1950s to early 1960s (That is incorrect.)
- Late 1960s to early 1980s (That's correct!)
- 1980s to early 1990s (That is incorrect.)
- 1994 to 2007 (That is incorrect.)
A: Late 1960s to early 1980s

Q: How did the Federal Reserve's policy during the Great Inflation period contribute to economic instability?
- They maintained consistently high interest rates throughout expansions and contractions in the economy. (That is incorrect.)
- They followed a "stop-go" policy, easing too quickly when inflation fell temporarily. (That's correct!)
- They ignored inflation completely. (That is incorrect.)
- They focused exclusively on reducing unemployment. (That is incorrect.)
A: They followed a "stop-go" policy, easing too quickly when inflation fell temporarily.

Q: Which of the following was mentioned as a factor that led to the Great Inflation?
- Oil and commodity price shocks (That's correct!)
- An increase in interest rates by the FOMC (That is incorrect.)
- An increase in disposable income for Americans through stimulus checks (That is incorrect.)
- Increased international trade agreements (That is incorrect.)
A: Oil and commodity price shocks

Q: What does the article identify as a key ingredient that was lacking during the Great Inflation period?
- Economic growth (That is incorrect.)
- Tax reform (That is incorrect.)
- A commitment to restore price stability (That's correct!)
- Technological innovation (That is incorrect.)
A: A commitment to restore price stability