Multiple Choice
If the Fed wants to lower everyone's expected inflation rate, one alternative is to suddenly reduce the inflation rate; however
A) this policy seldom works in reality.
B) a recession usually results.
C) the short-run Phillips curve tradeoff is replaced by the long-run Phillips curve tradeoff.
D) potential GDP usually decreases.
E) such a policy is illegal in the United States.
Correct Answer:

Verified
Correct Answer:
Verified
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