The three figures below show the phases of a disinflation. In part (i), the economy is experiencing a sustained inflation at . FIGURE 144 Refer to Figure 144, part (iii). Consider the recovery phase of the disinflation process. The disadvantage of implementing an expansionary monetary policy to shift equilibrium from to is Question content area bottom Part 1 A. a falling price level. B. that since expected inflation has been eliminated, real wages will not adjust to any further AD or AS shocks. C. the danger of reviving expected inflation, and having to repeat the phases of the disinflation. D. the likelihood of entering a deflationary phase. E. firms and consumers will no longer respond to decreases in interest rates