The US Federal Reserve has a stable price (2% inflation) target and a full employment (5 to 5.2% unemployment) target. The diagram presents the inflation rate and unemployment rate recorded between 2007 and 2014. What can be inferred about the success of Federal Reserve economic policy, 2007 to 2014?
- AThe continuing deflation meant failure in the inflation target.
- BThe inflation target was achieved less frequently than the employment target.
- CThe least successful period for economic policy was experienced in 2007.
- DThe nearest to complete policy success was achieved in 2008.