The Federal Reserve monetary policy goals of maximum employment means

Question

Quizplus · Accepted Answer

The Federal Reserve's monetary policy goal of maximum employment means keeping the unemployment rate close to the natural unemployment rate. The natural unemployment rate is the rate of unemployment that exists when the economy is at full employment and there is no cyclical unemployment. Therefore, the goal is not to reach a zero percent unemployment rate or eliminate all forms of unemployment, but to achieve a level of unemployment that is consistent with a healthy and growing economy.

The Federal Reserve Monetary Policy Goals of Maximum Employment Means