The suggestion that the Fed concentrate only on reducing inflation is an attempt to
A)stabilize the level of unemployment and inflation.
B)shift the long-run Phillips curve to the right.
C)improve the efficiency of the self-correcting mechanism.
D)simplify demand management by focusing on only one goal.

Question

Quizplus · Accepted Answer

Focusing solely on reducing inflation simplifies demand management by allowing the Fed to concentrate on a single goal, rather than trying to balance multiple objectives such as both inflation and unemployment.

The Suggestion That the Fed Concentrate Only on Reducing Inflation