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Economic and social costs of unemployment

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1. In establishing its monetary policy priorities, the Federal Reserve always has to take into account 1) the economic and social costs of inflation and 2) the economic and social costs of unemployment. What are these economic and social costs? Fully explain

2. If you were advising the President of the US and the Chair of the Federal Reserve, what monetary policy, fiscal policy or alternative policy actions (if any) would you advise them to take to stimulate the economy and reduce unemployment. Fully explain your reasons for each policy or alternative action proposed ( or for why you believe no new actions need be taken)

Reference no: EM131372824

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