Question

“Because inflation targeting focuses on achieving the inflation target, it will lead to excessive output fluctuations.” Is this statement true, false, or uncertain? Explain.

Short answer

This statement is true.

Step-by-step solution

Concept Introduction

Inflation can be characterized as it is the pace of expansion in costs over a given period. Inflation is typically an overall activity, as the general development in costs or the development in the cost of living in a country.

Explanation

This assertion is valid because inflation focusing on causes genuine results or swapping scale instability. So obtaining an inflation target; will direct to unreasonable results inflation.

Final Answer

This assertion is valid because inflation focusing on causes genuine results or swapping scale instability. So obtaining an inflation target; will direct to unreasonable results inflation.