The Most Important Factor Determining How Quickly Expected Inflation Adjusts

question 47

Multiple Choice

The most important factor determining how quickly expected inflation adjusts when the government attempts to reduce inflation is

• A)the slope of the Phillips curve.
• B)the credibility of the government's disinflationary policy.
• C)the degree of gradualism in the government's disinflationary policy.
• D)the slope of the IS curve.

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