New classical economists believe that the best way to reduce inflation is to
A)do so gradually.
B)do so all at once.
C)use wage and price guidelines.
D)bring on a recession, which gradually reduces cost-push inflation.

Question

Quizplus · Accepted Answer

New classical economists advocate for rapid adjustments to economic policies to combat inflation, believing that swift action to reduce inflation will minimize the duration of economic disruptions and quickly restore equilibrium. They argue against gradual measures, which they see as prolonging the adjustment period and potentially embedding inflationary expectations more deeply into the economy.

New Classical Economists Believe That the Best Way to Reduce