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29.3 Reducing Inflation The Three Figures Below Show the Phases of a Disinflation.In

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29.3 Reducing Inflation
The three figures below show the phases of a disinflation.In part (i) ,the economy is experiencing a sustained inflation at E1. 29.3 Reducing Inflation The three figures below show the phases of a disinflation.In part (i) ,the economy is experiencing a sustained inflation at E<sub>1</sub>. FIGURE 29-4 -Refer to Figure 29-4,part (iii) .Consider the recovery phase of the disinflation process when output is returning from to Y*.Real GDP can return to potential either by ________,or by ________. A) the AS curve falling slowly back to ; further monetary contraction which shifts the AD curve to B) the AS curve falling slowly back to ; a monetary expansion which shifts the AD curve to C) fiscal policy which causes the AS curve to shift back to ; a monetary expansion which shifts the AD curve to D) legislating a wage-and-price freeze which shifts the AS curve back to ; a further contraction of monetary policy which shifts the AD curve to E) the AS curve drifting upward to ; the AD curve drifting back to FIGURE 29-4
-Refer to Figure 29-4,part (iii) .Consider the recovery phase of the disinflation process when output is returning from 29.3 Reducing Inflation The three figures below show the phases of a disinflation.In part (i) ,the economy is experiencing a sustained inflation at E<sub>1</sub>. FIGURE 29-4 -Refer to Figure 29-4,part (iii) .Consider the recovery phase of the disinflation process when output is returning from to Y*.Real GDP can return to potential either by ________,or by ________. A) the AS curve falling slowly back to ; further monetary contraction which shifts the AD curve to B) the AS curve falling slowly back to ; a monetary expansion which shifts the AD curve to C) fiscal policy which causes the AS curve to shift back to ; a monetary expansion which shifts the AD curve to D) legislating a wage-and-price freeze which shifts the AS curve back to ; a further contraction of monetary policy which shifts the AD curve to E) the AS curve drifting upward to ; the AD curve drifting back to to Y*.Real GDP can return to potential either by ________,or by ________.

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