The document discusses inflation and its effects. It describes rising food prices around the world in 2008 which increased costs of living and pushed up wages, impacting the overall supply of goods and services. Central banks were concerned this rising food inflation could lead to broader inflation across the economy. The document asks what the Fed would likely do to stop inflation, the consequences for the economy, and the impacts on employment and unemployment from the Fed's actions.

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Inflation
On pg. 255 in your text, The Economics in Practice describes the
increase in food prices around the world in 2008. Since food, in large
measure, affects the real income of households, increasing prices will
eventually push up wages and have an impact on the aggregate supply
curve. Central banks were very worried about the prospects for inflation
becoming generalized. To stop inflation, what would the Fed be likely to
do? What are the consequences for the economy? Specifically, what
would be the effects on employment and unemployment given the
actions taken by the Fed? Respond to at least two of your classmates’
postings