Assume adaptive expectations.Compared to a simple one-period lag,if the last five periods' inflation rates are averaged to arrive at currently expected inflation,we have ________ disinflationary loops and ________ recessions accompanying disinflationary policy
A)skinnier,milder
B)skinnier,deeper
C)fatter,milder
D)fatter,deeper

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The Answer of Assume adaptive expectations.Compared to a simple one-period lag,if the last five periods' inflation rates are averaged to arrive at currently expected inflation,we have ________ disinflationary loops and ________ recessions accompanying disinflationary policy
A)skinnier,milder
B)skinnier,deeper
C)fatter,milder
D)fatter,deeper

Assume Adaptive Expectations