You are appointed the Chairperson of the FOMC. Use the link below to run a monetary simulation. You are required to hit the inflation target. In order to receive credit, you have to reappointed by hitting both your inflation and unemployment targets. You can run the simulation as many times as necessary. When you are successful enter in the ending inflation and unemployment rates.

What is your ending inflation rate?

A. Above 6.0%
B. Between 5.0% - 5.9%
C. Between 3.6% - 4.9%
D. Between 0.1-3.5%

D. Between 0.1-3.5%

Explanation:

Inflation rate of a country is defined as a change in monetary value of goods and services over a certain period. In the given scenario we are required to keep inflation rate at 2% and unemployment rate 5%. The Philips curve demonstrates a stable inverse relation between rates of unemployment and inflation. In the short run there is trade off between unemployment and inflation which means inflationary policies will result to decrease the unemployment rate.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.