To bring disinflation to an economy, policy makers must:

Question

Quizplus · Accepted Answer

One effective way to bring disinflation to an economy is to lower expectations about inflation. This can be achieved through communication strategies by policymakers to signal their commitment to lower inflation rates and by implementing measures that show they are taking actions to achieve this goal. When individuals and businesses expect lower inflation rates, they are less likely to demand higher wages and prices, which can help reduce inflationary pressures in the economy.

To Bring Disinflation to an Economy, Policy Makers Must