Opportunistic disinflation occurs when policymakers:

Question

Quizplus · Accepted Answer

Opportunistic disinflation refers to a decrease in inflation that occurs as a result of positive supply shocks, such as a decrease in the cost of production inputs or an increase in productivity. By taking advantage of these supply shocks, policymakers can lower inflation without causing a significant decline in economic activity. Changing the target inflation rate or attempting to permanently lower inflation can be more difficult and have unintended consequences, making B the best choice.

Opportunistic Disinflation Occurs When Policymakers