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How do you balance the short-run tradeoff between inflation

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If you were macroeconomic policymaker, how do you balance the short-run tradeoff between inflation rate and unemployment rate? Explain.
Official unemployment rate is an imperfect measure of joblessness. Give examples on how the definition of unemployment rate overstates or understates the number of jobless people in the economy.
Some policymakers and analysts argue that unemployment benefits create disincentives for job search and prolong the unemployment of workers. What's your opinion on the relationship between unemployment benefits and labor market participation of the unemployed people?

Reference no: EM13539602

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