Course work in macroeconomics



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course work

Maximum employment.

The goal of maximum employment on an equal footing with price stability as the goal of monetary policy. However, politicians acknowledge factors other than money the policy largely determines the maximum level of employment ensuring stability without leading to high inflation. These factors include the following population and composition, species change trends work and skills that require manpower and other similar policies things that affect education and upbringing. In result, this will not be the case The FOMC(Federal Open Market Committee)is responsible for setting the stated goal for employment.

The Federal Reserve’s maximum employment and 2 percent targets inflation is usually complementary. For example, when inflation less than 2 percent and the FOMC draws the same conclusion on working conditions market, the Committee is not strong in terms of maximum employment, the FOMC can keep interest rates

temporarily low to increase employment and reverse inflation 2 percent. Of course, the FOMC can sometimes face some situations its goals are not complementary; for example, inflation may be above 2 percent even when employment is below the maximum level. FOMC this is stated in the “Statement of Long-Term Objectives and Money Transactions” Policy strategy, ”he said an approach to achieving their goals, given how close or far they are employment depends on the highest level and how close or far inflation is 2 percent.



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