Before the COVID-19 pandemic, we had both very low unemployment and inflation. Then unemployment rose. In the future, unemployment and inflation could change and it's good to have policy plans in place before either of these problems gets too bad.

• Imagine that you oversee macroeconomic policy. Start your discussion by responding to these questions and explaining your answers:
  • What are some of the problems, difficulties, or hardships caused by unemployment?
  • What are some of the problems, difficulties, or hardships caused by inflation?
  • If you had to make a choice today between a policy that would head off increases in inflation or increases in unemployment, which one would you choose?