Currently if inflation is 2% and the goods inflation target is 2.5%, policymakers
A)congratulate themselves for coming in under their target
B)are unhappy because they have come in under their target
C)are indifferent because they don't have an inflation target
D)are indifferent because they are more interested in asset inflation.

Question

Quizplus · Accepted Answer

Policymakers are likely to be unhappy because the current inflation rate of 2% is below their target of 2.5%, indicating that the economy is not meeting its inflation goals.

Currently If Inflation Is 2% and the Goods Inflation Target