Essentially, the way to reduce inflationary expectations using demand-side policies is to cause an economic slowdown.

Question

Quizplus · Accepted Answer

When demand-side policies are implemented, such as raising interest rates or reducing government spending, it can lead to reduced demand and a slowdown in the economy. This can help to reduce inflationary pressures by reducing the demand for goods and services, leading to lower prices and reduced inflation expectations.

Essentially, the Way to Reduce Inflationary Expectations Using Demand-Side Policies