Which policy target will NOT affect the combination of inflation and unemployment the economy experiences?
A) taxes
B) government spending
C) the money supply
D) market prices

Question

Quizplus · Accepted Answer

Market prices are not directly controlled by government policy and, therefore, do not directly influence the combination of inflation and unemployment in the economy. While market forces such as supply and demand can indirectly influence inflation and unemployment, government policies such as taxes, government spending, and the money supply have more direct effects on these economic factors.

Which Policy Target Will NOT Affect the Combination of Inflation