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, which can lead to a tradeoff between the volatility in output and the volatility in inflation.

Monetary Policymakers Face a Tradeoff Between