Problem
Problem and impact that inflation has on the economy as a whole and the various economic entities (individuals, firms, financial institutions, etc.).
1) Identify and summarize three specific monetary policy tools that the Fed can use to combat inflation.
a) Explain how each tool may reduce inflation and how it impacts employment and growth.
2) Describe the problems and impact that recession has on the economy as a whole and the various economic entities (individuals, firms, financial institutions, etc.).
3) Identify and summarize three specific monetary policy tools that the Fed can use to combat a recession.
a) Explain how each tool may reduce recession and how it impacts employment and growth.