Why might attempts to fine-tune the economy be ineffective

jagguarpaw January 27, 2017 0 Comments

Question: Why might attempts to fine-tune the economy be ine…

Why might attempts to fine-tune the economy be ineffective? Instead of fine-tuning, what do economists generally advocate that policymakers do? When the Federal Reserve lowers the real interest rate, what happens to the output gap and to the inflation rate?