The effectiveness of a monetary or fiscal policy change in combating inflation depends on the level of anticipation (i. e. credibility) the policy change has with the financial markets. Assume that the U. S. economy is currently in long-run economic equilibrium but suffering with unacceptably high inflation, which the Federal Reserve is determined to fight. The Fed could make either an unexpected or an anticipated policy change to reduce inflation. Describe the likelihood of a recession occurring as a result of either type of policy change. Unexpected policy change Anticipated policy change（）①A. Recession likelyRecession likely ②B. Recession likelyRecession unlikely ③C. Recession unlikely Recession likely
A. ①
B. ②
C. ③
