If the Federal Reserve Wants to Reduce Inflation from 4

question 198

Essay

If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently,how can that goal be achieved,and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips curve in the short run and the long run.

---

Definitions:

Parent

A parent is a caregiver of the offspring in their own species and typically refers to a biological or adoptive mother or father who supports and nurtures their child or children.

Friend

A person with whom one has a bond of mutual affection and trust, typically exclusive of sexual or family relations.

Family Decisions

involve collective choices made by family members regarding aspects such as education, health care, financial management, and daily living activities.

Permissive/indulgent

A parenting style characterized by high levels of warmth and low levels of discipline, where parents are more likely to allow their children considerable freedom inside and outside of the house.