Scenario You are appointed the Chairperson of the FOMC Use t

Scenario: You are appointed the Chairperson of the FOMC. Use the link below to run a monetary simulation. You are required to hit the inflation target. In order to receive credit, you have to reappointed by hitting both your inflation and unemployment targets. You can run the simulation as many times as necessary. When you are successful enter in the ending inflation and unemployment rates.http://www.frbsf.org/education/activities/chairman/What is your ending inflation rate?

What is the ending unemployment rate?

A) Between 2.0% - 6.5%
B) Between 6.6% - 10.0%
C) Between 10.1% - 13.5%
D) Above 13.5%

Solution

Scenario: You are appointed the Chairperson of the FOMC. Use the link below to run a monetary simulation. You are required to hit the inflation target. In order to receive credit, you have to reappointed by hitting both your inflation and unemployment targets. You can run the simulation as many times as necessary. When you are successful enter in the ending inflation and unemployment rates.

What is your ending inflation rate?   

What is the ending unemployment rate?

A) Between 2.0% - 6.5%
B) Between 6.6% - 10.0%
C) Between 10.1% - 13.5%
D) Above 13.5%

        The main target is reducing the rate of unemployment and inflation rate. Therefore the ending of inflation and unemployment should be: Between 2.0% - 6.5%