Monetary policymakers face a tradeoff between:
A) the level of output and the rate of inflation.
B) the volatility in output and the volatility in inflation.
C) low unemployment and high inflation.
D) high unemployment and low inflation.

Question

Quizplus · Accepted Answer

Monetary policymakers often face a tradeoff between stabilizing output and controlling inflation, as efforts to reduce volatility in one can increase volatility in the other.

Monetary Policymakers Face a Tradeoff Between