ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve System has been given a dual mandate-pursuing the economic goals of maximum employment and price stability. It does this by using a variety of policy tools to manage financial conditions that encourage progress toward its dual mandate objectives-in other words, conducting monetary policy.

Detailed explanation-2: -Congress explicitly stated the Fed’s goals should be “maximum employment, stable prices, and moderate long-term interest rates.” It is these goals that came to be known as the Fed’s “dual mandate” and remain today.

Detailed explanation-3: -Frictional unemployment results when people are temporarily unemployed, either because they are new to the job market or are searching for a better job. Structural unemployment is caused by a mismatch in the skills held by those looking for work and the skills demanded by those seeking workers.

Detailed explanation-4: -A dual mandate is the practice in which elected officials serve in more than one elected or other public position simultaneously.