The Federal Reserve's mandate to achieve maximum employment means that the Fed is trying to achieve:
A) zero unemployment.
B) the natural rate of unemployment.
C) the lowest possible rate of unemployment.
D) an unemployment rate that is no higher than 6.5%.

Question

Quizplus · Accepted Answer

The Federal Reserve aims for the natural rate of unemployment, which accounts for frictional and structural unemployment but not cyclical unemployment, reflecting a healthy economy without overheating it.

The Federal Reserve's Mandate to Achieve Maximum Employment Means That