Which of the following issues is a concern that critics express about the use of an inflation-control target?
A)The policy control rests in the hands of civil servants rather than in the hands of elected officials.
B)The policy control rests in the hands of elected officials rather than in the hands of civil servants.
C)It encourages a focus on real GDP growth at the expense of employment and of inflation.
D)It encourages a focus on inflation at the expense of employment and real GDP growth.
E)Monetary policy tends to be sensitive to the state of employment while focusing on inflation control targets.

Question

Quizplus · Accepted Answer

Critics of inflation-control targets argue that focusing solely on achieving a low inflation rate can come at the expense of other important goals, such as promoting employment or real GDP growth. This can lead to a narrow policy focus that neglects broader economic concerns.

Which of the Following Issues Is a Concern That Critics