With a cold turkey disinflationary policy of reducing gdp, Ask an Expert

Economics

With a "cold turkey" disinflationary policy of reducing GDP growth, the assumption of adaptive expectations causes

a temporary recession en route to the final long-run equilibrium.

a permanently lower level of output at the long-run rate of inflation.

inflation to not decrease in the long-run.

an immediate full reduction in inflation with no temporary recession.

Please Explain

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235416

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