Go to http://sffed-education.org/chairman/ and review the LEARN MORE section. Th

Question

Go to http://sffed-education.org/chairman/ and review the LEARN MORE section. Then return to Fed Chairperson Simulation Game web homepage and play the simulation game for three rounds (each round is 16 quarters). Record the starting and ending FEDERAL FUNDS RATE, UNEMPLOYMENT RATE, and INTEREST RATE for each three rounds and indicate if you were able to keep your job at the end of each round. In addition, write a 200-300 word explanation of five uncontrollable factors that must be taken into consideration in order to be successful as Fed Chairperson. ***** PLEASE DO NOT COPY ANY ANSWERS FROM THE SITE AS THEY ARE THE SAME*** PLEASE RESEARCH A LITTLE MORE AND SEND BACK , THANK YOU

Explanation / Answer

Since unemployment is very high. I will reduce the interest rates to the level fo 1.50 to enhance employment in the economy. 3% ofunemployment is considered as natural and economy is deemed to operate at ful employment. As a result, employment will increase but inflation will also increase. So, I need to make a balance between inflation and employment. Thereafter also I need ot keep an eye on the market and use monetary policy as a tool as and when required. So far at 1.50% rate of interest, unemployment is quite low near 3%. We need to choose such a policy that unemployment remains between 3-4% and inflation does not exceed 5-6%

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