When tasked with assessing the effectiveness of a monetary policy, which of the following responses best integrates the verbs 'analyze,' 'evaluate,' and 'assess' in the context of its impact on inflation and unemployment rates?

To assess the effectiveness of a monetary policy, you need to analyze how it affects inflation and unemployment rates. This means looking closely at the data and understanding the relationship between the policy decisions, like changing interest rates, and the outcomes. Then, you should evaluate whether these outcomes are positive or negative, considering how inflation might rise or fall and how unemployment rates change as a result. For example, if a central bank lowers interest rates, you would analyze the resulting increase in spending and investment, then evaluate if this leads to lower unemployment without causing excessive inflation. By carefully assessing these factors, you can form a clear picture of how effective the monetary policy has been.