Inflation targeting would fight both inflation and the recession in the event of an adverse supply shock.

Name: Inflation targeting would fight both inflation and the recession in the event of an adverse supply shock.
Brand: Quizplus
Rating: 4.7 (43 reviews)

Question

Quizplus · Accepted Answer

Inflation targeting primarily focuses on controlling inflation by adjusting interest rates and does not directly address the underlying causes of a recession, especially in the case of an adverse supply shock which can lead to stagflation (a combination of inflation and recession).

Inflation Targeting Would Fight Both Inflation and the Recession in the Event