The cost of inflation reduction is a small but permanent increase in unemployment.

Question

Quizplus · Accepted Answer

Inflation reduction strategies do not inherently lead to a small but permanent increase in unemployment. The relationship between inflation and unemployment is complex and influenced by various factors, including monetary policy, labor market dynamics, and economic conditions. Some inflation reduction measures might temporarily increase unemployment, but this is not a universal or permanent outcome.

The Cost of Inflation Reduction Is a Small but Permanent