The Fed uses monetary policy to offset the effects of a recession (high unemployment and falling prices when actual real GDP falls short of potential GDP) and the effects of a rapid expansion (high prices and wages). Can the Fed, therefore, eliminate recessions?
A) The Fed can only soften the magnitude of recessions, not eliminate them.
B) The Fed can, but choses not to, eliminate recessions
C) The Fed can eliminate recessions by properly 10T anticipating the economic events that cause them
D) The Fed is only concerned with the money supply and interest rates

A

Explanation:

in this question, we are to select from the options which is the correct answer.

Option A is the correct answer

The Fed can only soften the magnitude of recession, not eliminate them

This is because the fed introduced monetary policy and it’s only implemented to offset the effect so he would be able to relax the effect of recession and high expansion it only suggest mid way to offset the effect of low and high economic activities.

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)