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Business, 16.04.2021 18:10 rustalex6045

An ideal economic situation for a central bank would be one of rates of unemployment, suggesting that output is high, coupled with rates of inflation, giving central banks more leeway to help mitigate recessions. However, due to real shocks which increase input prices, central banks must sometimes choose between low rates of growth, resulting in rates of unemployment, or equally unwanted rates of inflation. If the Federal Reserve increases the money supply too much, might become too high, prompting the Federal Reserve to contract the money supply and potentially send the economy into .

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