If people have rational expectations a monetary policy contraction that is announced and is credible could ?

Question

Xaibi Aslam · Accepted Answer

reduce inflation with little or no increase in unemployment

Xaibi Aslam · Answer

Increase inflation but would decrease unemployment by an unusually large amount

Xaibi Aslam · Answer

increase inflation with little or no decrease in unemployment

Xaibi Aslam · Answer

reduce inflation but it would increase unemployment by an unusually large amount

Question #49505