Unemployment and Inflation

Unemployment and Inflation

By law the Federal Reserve is required to monitor unemployment and inflation. Respond to the following components:

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  • How does the Federal Reserve accomplish these goals?
  • What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios: recession or depression and robust economic growth?
  • What tool is the most appropriate among the different monetary policy tools available today?

Your initial post should be a minimum of 300 words.

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