When both inflation and unemployment are relatively high, there is more disagreement among FOMC members about the proper monetary policy to implement.

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When both inflation and unemployment are high, it creates a dilemma for the Federal Open Market Committee (FOMC) members between focusing on controlling inflation or stimulating employment. This situation often leads to more disagreement among members about the proper monetary policy to implement, as some may prioritize fighting inflation while others may prioritize reducing unemployment.

When Both Inflation and Unemployment Are Relatively High, There Is