Suppose Policymakers Are Faced with Ending a Sustained Inflation

Multiple Choice

Suppose policymakers are faced with ending a sustained inflation.They must weigh the future benefits of ________ against the immediate costs of ________.

A) lower inflation; administering the policy
B) a higher rate of economic growth; reduced output
C) lower rate of economic growth; lower inflation
D) lower inflation; reduced output and higher unemployment
E) a higher real GDP; lower inflation