The Federal Reserve has a dual mandate of full employment and price stability. Oftentimes this mandate is challenging as there is a short term tradeoff between unemployment and ination. From 2008 to 2015, however, inflation was consistently below the target rate while unemployment was well above its natural level. Should the Fed have pursued more aggressive monetary policy to raise ination and lower unemployment? Choose one from below and state which school of economics your answer is subscribing Then, . explain your answer using what we have learned in this class. V A. No. ination is always bad because it lowers the incentive to invest and we know that investment that increases productivity is the only way to raise living standards in the long run. B. No. The Fed exhausted its normal tools and the appropriate policy response than is large scale scal stimulus. There is only so much the Fed can do. C. Yes. The Fed could have done more and raising ination to 3 or 4 percent would have eased the recovery without long term damage to the economy. D. No. The Fed should not over-stimulate the economy by raising ination and lower unemployment as the current economic situation is quite stable. Rather the Fed should raise the interest rate so that when there is another recession, the Fed has an effective tool to use