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Economics (University of Toronto)Question 1:Question 4 (20 marks)1. (a) Explain why central bank cannot control the money supply perfectly. (6 marks)2. (b) Suppose that the economy is experiencing a high unemployment rate and at the same time inflation is quite high. Explain how does the economy return to the natural rate of unemployment if the policymakers also want to achieve low inflation? Explain whether it will be possible to achieve both in

Give a name to your report.b. Explain what type of portfolio you have managed. The goals, constraints, andpolicies you have followed for this portfolio management. Briefly mention howChapters 28 and/or other reading materials help you to come up with this idea.Discuss the special needs and/or constraints you had and the focus of your policy.Include possible external factors that you are especially concerned about. Mentionif you have changed or ad