With a "Cold Turkey" Disinflationary Policy of Reducing GDP Growth,the

Multiple Choice

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

A) inflation to not decrease in the long-run.
B) an immediate full reduction in inflation with no temporary recession.
C) a temporary recession en route to the final long-run equilibrium.
D) a permanently lower level of output at the long-run rate of inflation.