The goal of monetary policymakers with regard to the business cycle is to:

Question

Quizplus · Accepted Answer

Monetary policymakers aim to stabilize the economy by smoothing out the peaks and troughs of the business cycle, rather than eliminating them entirely. This involves using tools like interest rates and monetary supply adjustments to mitigate the effects of economic downturns and overheating, rather than accentuating the cycle's phases, focusing solely on long-term growth, or increasing reliance on the cycle.

The Goal of Monetary Policymakers with Regard to the Business