Which of the following issues is a concern that critics express about the use of an inflation- control target?
A)The policy control rests in the hands of civil servants rather than in the hands of elected officials.
B)Monetary policy tends to be sensitive to the state of employment while focusing on inflation control targets.
C)It encourages a focus on real GDP growth at the expense of employment and of inflation.
D)It encourages a focus on inflation at the expense of employment and real GDP growth.
E)The policy control rests in the hands of elected officials rather than in the hands of civil servants.

Question

Quizplus · Accepted Answer

Critics express concern that a focus on inflation control targets may come at the expense of employment and real GDP growth, as policymakers may prioritize reducing inflation over other economic goals.

Which of the Following Issues Is a Concern That Critics