If people's expectations of inflation are formed rationally rather than based on adaptive expectations and if policymakers make a credible policy move to reduce inflation, then the costs of reducing inflation will be traditional estimates of the sacrifice ratio. Group of answer choices

Correct/Complete Question:

If people's expectations of inflation are formed rationally rather than based on adaptive expectations and if policymakers make a credible policy move to reduce inflation, then the costs of reducing inflation will be traditional estimates of the sacrifice ratio.

A) much higher than

B) much lower than

C) exactly equal to

D) approximately two percent greater than

B, much lower than

Explanation:

Inflation can be defined as the continuous increase in price of goods and services over a period of time.

Inflation can as much as possible affect the economy of a country or state, etc. This is because if policy makers listen to the rationally formed expectations and opinions of the people to make reduce inflation, it will be much lesser compared to the traditional estimates of the sacrifice ratio.

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answer; /// i believe the correct answers are (b) change in population and (e) future expectation of check first, good luck