The cost of inflation reduction is a large, permanent increase in unemployment.

Question

Quizplus · Accepted Answer

Inflation reduction does not necessarily lead to a large, permanent increase in unemployment. Economic policies aimed at reducing inflation, such as monetary tightening, may temporarily increase unemployment, but this effect is not typically permanent. Over time, economies can adjust, and unemployment levels can decrease as inflation stabilizes.

The Cost of Inflation Reduction Is a Large, Permanent Increase