GiganticMoff
GiganticMoff GiganticMoff
  • 13-05-2020
  • Business
contestada

Is it preferable for central banks to primarily target inflation or unemployment? Why?

Respuesta :

sukunshrestha
sukunshrestha sukunshrestha
  • 13-05-2020

Answer:

he central bank uses monetary policy to influence money supply, prices and output in the economy. ... A decrease in aggregate demand would result in fall in prices and inflation would fall. Particularly, there is no thumb rule for deciding whether the primary target for central bank should be inflation or unemployment

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