In the summer of 2018, a time when U.S. inflation was rising and output was approaching potential, a story in The Globe and Mail reported that the release of strong employment-growth data for the United States led to a plunge in prices on the U.S. stock market. Part 2 a. Explain why high employment growth would lead people to expect the U.S. central bank to tighten its monetary policy. It signals that output is on a path to a recessionary an inflationary output gap, which without a tightening in monetary policy could result in accelerating and/or prolonged inflation deflation