Many central banks now indicate that their primary objective is to keep inflation at a persistently low rate. If the rate of inflation is persistently low, will this help reduce the instability of the business cycle? Why or why not?

Explain whether policy makers should be more concerned about the economy going into a recession or facing high inflation and why.

This is commonly described as "too much money chasing too few goods." More accurately, it should be described as involving "too much money spent chasing too few goods," since only money that is spent on goods and services can cause inflation. It is the opposite of cost-push inflation. Explain how increase in government spending and increase wages for labor will lead to inflation in Ghana [HINT SUPPORT YOUR EXPLANATIONS WITH APPROPRIATE DIAGRAMS] ?

Why is there no upward or downward pressure on the inflation rate when the economy is at full employment?