If Inflation and Unemployment Are of Direct Concern to Fed

question 109

Essay

If inflation and unemployment are of direct concern to Fed officials,why do they make such a big issue about money growth and interest rates? Why don't they just target the unemployment rate and the inflation rate directly? Explain.

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Definitions:

Auto Repairs

Services provided to fix or maintain vehicles to ensure they are in optimal working condition.

Gasoline

A petroleum-derived liquid mixture consisting primarily of hydrocarbons, used primarily as fuel in internal combustion engines.

Auto Repairs

Services provided by mechanics and technicians to fix and maintain vehicles to ensure their proper functioning.

Gasoline

A combustible, easily evaporated liquid obtained from petroleum, primarily utilized as fuel in engines that operate on internal combustion.