The first thing as chairman I would do is call a meeting the with federal market FOMC (federal open market committee they meet 8 times a year and talk about policy or federal funds rate, within this meeting we would find a way to continue in decreasing our unemployment rate, and deal with the much unavoidable conflict of increased inflation.. Buy government bonds or securities to increase my supply. This increases money to commercial public, and banks which helps with the interest rates decreasing, and help increase the money market. This allows more money to be borrowed from commercial banks which increases the overall GDP, unemployment will decrease which will also increase inflation. Positive effects; increase in real GDP, and decrease in unemployment. Negative effects include inflation rate increase, and the trade off is as one thing increases something else will decrease. So with unemployment decreasing, inflation will rise to counter this. Trade off is known as opportunity cause. The price of money is considered an interest rate, how much more you will be required to pay after borrowing money much like in a loan. Phillips published an article about wage inflation which is today known as the Philipps curve. Taxation, government spending and wages are related to fiscal policy therefore, by using government spending you can switch the GDP to the right, supply will increase. And interest rates will decrease. People will be able to borrow more money so investors will become more frequent and GDP will shift to the right. Costal inflation is when you try to lower unemployment and real GDP will increase this kind of relationship much like Philips curve is known as costal inflation. Spending multiplier is often solved with 1/ 1-mpc marginal consumption. This is the relationship between real gdp and AE(aggregaite expenditure) spending multiplier is good to keep an eye