Based on the attached article that was written by Tim Duy of the Bloomberg View and publish PDF

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Based on the attached article that was written by Tim Duy of the Bloomberg View and publish.
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Based on the attached article that was written by Tim Duy of the Bloomberg View and published on April 19, 2018, respond to the following questions:

1) What is meant by the term stagflation? Stagflation refers to the simultaneous occurrence of unemployment and inflation. With a high inflation rate and slow economy people have less money to spend. Stagflation is often caused by a rise in the price of supplies, such as oil. When oil prices tripled in the 1970’s Stagflation occurred.

2) What is meant by the term full employment? Full employment is an economic scenario where all labor resources are being used in the most efficient way possible.

3) The author states, “In short, if there is any hint of sustained inflation at this stage of the business cycle -- with low unemployment threatening to go lower with fiscal stimulus -- past behavior indicates the Fed will risk and accept a recession before it allows a truly high inflationary environment to develop. That means your medium-term risk is more recessionary than inflationary.” Explain that statement. The main objective for the Fed is to ensure maximum employment and stable prices. Feds try to fight a recession by lowering interest rates and selling/buying U.S. government debt. A recession is when the economy declines significantly for at least six months. Inflation is defined as a sustained increase in the general level of prices for goods and services. Being more recessionary means the economy will be declining at a faster rate than the prices of goods and services increase.

4) Approximately how high did the annual rate of inflation hit in the 1970s?.

In the 1970’s the stock market was weak. The economic growth was very low, and the stock market lost 40% in an 18-month period, because people did not want anything to do with stocks. The average annual rate for 1970 was 38.8 with a 5.8% annual percent change.

5) It is widely believed that there is a tradeoff between managing inflation and unemployment, .i.e., attempts to stem inflation through higher interest rates will lead to increases in the unemployment rate. Discuss....