In order to meet the dual mandate, the Fed must:
A) maintain price stability.
B) maintain full employment.
C) keep unemployment levels near the NAIRU.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

The Fed must maintain both price stability, which means controlling inflation, and full employment, which means keeping unemployment low. In order to achieve full employment, the Fed must also keep unemployment levels near the non-accelerating inflation rate of unemployment (NAIRU). Therefore, all three statements are true.

In Order to Meet the Dual Mandate, the Fed Must