The most significant cost to a central bank of reducing unemployment is the costs
A)incurred by printing and distributing new money.
B)of lower output.
C)of higher real wages.
D)of inflation.

Question

Quizplus · Accepted Answer

The most significant cost to a central bank of reducing unemployment is typically the cost of inflation. This is because to reduce unemployment, a central bank might increase the money supply to stimulate economic activity, which can lead to higher prices or inflation.

The Most Significant Cost to a Central Bank of Reducing