Macroeconomics question?

Posted on 2014-12-03 06:32:00 in Economics by MIKE

You have just been promoted to chairman of the federal reserve. You have an inherited an economy with an unemployment rate of 8% and an inflation rate of 1%. It is your job to reduce unemployment to its natural rate of 4%. Explain the process by which you are going to achieve the target unemployment rate. What difficulties and trade offs will you account for when bringing the unemployment rate down?

Please answer in a paragraph or more explain in it. It's a study guide question for my exam next week.
And thank you very much in advance for going through the hassle :)

I really appreciate it!!

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