If the goal of a monetary policy was to stabliize output at full employment and promote price stability then what would that policy look like if the federal reserve thought the natural rate of employment was 5% when it was actually 6%. I don't see how this would affect price stability or how they would stabilize
If the goal of a monetary policy was to stabliize output at full employment and promote price stability then what would that policy look like if the federal reserve thought the natural rate of employment was 5% when it was actually 6%. I don't see how this would affect price stability or how they would stabilize
Chapter1: Making Economics Decisions
Section: Chapter Questions
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