Which of the following is NOT a recommended solution proposed for the slow growth of employment during the economic expansion that began in 2009?
A) expansionary monetary policy
B) Congress and the president addressing structural problems
C) the Fed reducing inflation by increasing its target for the federal funds rate
D) expansion of aggregate demand through fiscal policy

Question

Quizplus · Accepted Answer

The Fed reducing inflation by increasing its target for the federal funds rate is not a recommended solution for slow growth of employment. This is because increasing interest rates can lead to a decrease in borrowing and spending, which can further slow down job creation and economic growth. The other options- expansionary monetary policy, Congress and the president addressing structural problems, and expansion of aggregate demand through fiscal policy- are all recommended solutions for boosting employment growth during an economic expansion.  So, options A, B, and D are all recommended solutions.

Which of the Following Is NOT a Recommended Solution Proposed