Cold Turkey Disinflation

Multiple Choice

Cold turkey disinflation

A) is very costly in terms of lost output in both the new classical and new Keynesian views.
B) is virtually costless in terms of lost output in both the new classical and new Keynesian views.
C) is very costly in terms of lost output in the new classical view, but virtually costless in the new Keynesian view.
D) is very costly in terms of lost output in the new Keynesian view, but virtually costless in the new classical view.