What role did the natural rate of unemployment traditionally play in the Fed's approach to monetary policy? A. The Fed's

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What Role Did The Natural Rate Of Unemployment Traditionally Play In The Fed S Approach To Monetary Policy A The Fed S 1 (157.34 KiB) Viewed 13 times

What role did the natural rate of unemployment traditionally play in the Fed's approach to monetary policy? A. The Fed's traditional approach was to enact monetary policies designed to keep the economy at the natural rate of unemployment. B. The Fed's traditional approach was to enact monetary policies designed to keep inflation low, and it did not consider the natural rate of unemployment. C. The Fed's traditional approach was to enact monetary policies designed to keep the money supply constant, and it did not consider the natural rate of unemployment. D. The Fed's traditional approach was to enact monetary policies designed to keep unemployment below the natural rate of unemployment. How did the Fed's new monetary policy strategy announced in 2020 affect that role? O A. The Fed's approach of targeting unemployment rates changed, as it now viewed tight labor markets as an automatic signal of higher inflation. B. The Fed's approach of targeting unemployment rates changed, as it no longer viewed tight labor markets as an automatic signal of higher inflation. C. The Fed's approach of targeting unemployment rates changed, as it no longer viewed tight labor markets as an automatic signal of low inflation. D. The Fed's approach of targeting unemployment rates changed, as it now viewed high unemployment as an automatic signal of low inflation.