Reducing business cycle fluctuations is an important goal of macroeconomic policy because it:

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Reducing business cycle fluctuations helps keep inflation low as it stabilizes economic activity and prevents extreme ups and downs in the economy, which can lead to inflationary or deflationary pressures. It also helps to maintain economic stability, which is necessary for businesses to make investment decisions and for consumers to make consumption decisions, thus preventing high unemployment rates. However, reducing business cycle fluctuations does not necessarily keep unemployment at zero, as a certain level of unemployment is considered normal and natural in any economy.

Reducing Business Cycle Fluctuations Is an Important Goal of Macroeconomic