What would happen if policy makers ,committed to full employment,?

encounter major problems, if they underestimate the natural unemployment rate.

What would happen if policy makers ,committed to full employment,?mortgage lenders

They would cause high inflation.

What would happen if policy makers ,committed to full employment,? loan

Well, we%26#039;d predict a forced increase in aggregate demand. Given the upward curve of the supply schedule, there%26#039;d be a marked increase in the price of goods: that%26#039;s inflation.

Inflation is bad. Once it starts, inflationary expectations can continue to drive prices higher and higher.

Given the time lag it takes to a) measure economic factors and b) enact policy, odds are the economic cycle will have changed before you%26#039;ve made any actions. It%26#039;s usually best to let the market sort itself out.|||Too many dollars would chase too few goods. In other words, inflation. The Fed will not commit to full employment. They will continue to be more of the %26quot;inflation watchdogs%26quot;.