The economy will not reach and maintain its goals of full employment and price stability unless the economy is
A)At full employment and the price level is stable.
B)Above full employment and the price level is stable.
C)Below full employment and the price level is stable.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Option A is the only choice that correctly identifies both full employment and price stability as necessary conditions for achieving the economy's goals. Option B suggests that being above full employment is desirable, which could lead to inflation if not properly controlled. Option C suggests that being below full employment is acceptable, which is not in line with the goal of full employment. Option D is incorrect as one of the other options is correct.

The Economy Will Not Reach and Maintain Its Goals of Full