Answer :
Final answer:
The U.S. Federal Reserve's macroeconomic policy includes the goals of price stability and full employment to ensure a strong economy. Price stability aims to maintain a consistent value of money, targeting a 2% inflation rate, while full employment means maximizing job availability for those seeking employment (Option a).
Explanation:
The U.S. Federal Reserve's macroeconomic policy goals primarily focus on price stability and full employment. Price stability involves maintaining a stable price level to prevent significant inflation or deflation, ensuring that the value of money stays consistent over time. This is crucial because high inflation can erode purchasing power and affect the economy negatively. The Federal Reserve targets a 2% annual inflation rate, particularly in Personal Consumption Expenditures without including Food or Energy, to maintain price stability.
Another key goal is achieving full employment, which strives for a low unemployment rate where nearly all individuals seeking work can find employment. It's important because high unemployment can lead to economic hardship for individuals and reduced economic growth for the country. While monetary policy manages these aspects, it also aids in promoting overall economic growth.
