Question

An inflation ________ may be more likely to stabilize output as well as inflation because they have established credibility and ________.A. hawk; reduced inside lagsB. hawk; anchored inflationary expectationsC. dove: anchored inflationary expectationsD. dove; lowered the core rate of inflation

Answer 1

Answer: hawk; anchored inflationary expectations

Explanation: An inflation hawk is someone who is committed to maintaining low inflation even at the cost of reduced output and unemployment. They are able to make their output stable despite inflation because they expectant of inflations so, they plan ahead to make output stable irrespective of inflation.