Suppose that inflation were 6 percent and unemployment were 10 percent.Which of the elements of the Fed's dual mandate would it be failing?

Question

Quizplus · Accepted Answer

The Fed's dual mandate includes maintaining price stability and achieving maximum sustainable employment. In this scenario, with inflation at 6 percent, it is failing to maintain price stability. With unemployment at 10 percent, it is also failing to achieve maximum sustainable employment.

Suppose That Inflation Were 6 Percent and Unemployment Were 10