Answer Happy

1. How effectively has the Federal Reserve used monetary
policy over the past decade to achieve its goals of price stability
and maximum employment? (Relevant inflation and unemployment
rates are required as part of a sufficient answer. These rates
can be found in the Week 7 module by selecting "FRED Website:
Inflation (CPI-U)". "BEA Website: Inflation (PCEPI)", and "BLS
Website: Unemployment". For CPI-U inflation rates, choose "10Y" for
the time period. Note that you can read the precise rates on the
CPI-U graph by placing your cursor on the graph lines for the CPI-U
and CPI-U core rates. The PCEPI rates are provided in the BEA chart
for a period of one year from the stated month. For unemployment
rates, under "Employment" check the box "Unemployment Rate
(Seasonally Adjusted)", then scroll down to click on the box
"Retrieve data". Once the data is retrieved, set your "From:" and
"To:" years to cover the past decade.)
2. What are some of the variables influencing price
stability and employment that are largely beyond the Fed's
control? (Examples include such variables as supply shocks, fiscal
policy, the pandemic, etc.)
3. Would it be preferable for the Fed to operate with a single
mandate of price stability instead of its current dual mandate?
(Your answer should consider the implications for achieving both
price stability and full employment.)