If the Fed were to allow unemployment to remain at a higher level than NAIRU:
A)they would maintain price stability.
B)the dual mandate would be violated.
C)they would fail to maintain full employment.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Allowing unemployment to remain above NAIRU would help maintain price stability (A) but would violate the dual mandate of price stability and full employment (B), and it would mean failing to maintain full employment (C).

If the Fed Were to Allow Unemployment to Remain at a Higher