Analysis of the Australian Experience in Reducing the Inflation Rate

Multiple Choice

Analysis of the Australian experience in reducing the inflation rate in the late 1980s suggests which of the following?

A) Inflation can be reduced without a recession.
B) Credibility plays no role in the macroeconomic effects of a disinflation policy.
C) The disinflation process was consistent with the Phillips curve prediction.
D) All of the above.
E) None of the above.