Which of the following statements about the goals of the macroeconomy is true?
A) All of the goals of the macroeconomy are attainable at the same time.
B) Price stability is never attainable in an economy like that of the United States.
C) Full employment, full production, and price stability are all attainable, but generally not at the same time.
D) Full production should not be a goal of the macroeconomy because there is no opportunity for economic growth if all resources are fully employed.

Question

Quizplus · Accepted Answer

The goals of full employment, full production, and price stability are indeed objectives of macroeconomic policy, but achieving all of them simultaneously is challenging due to the trade-offs involved. For example, policies that reduce unemployment might lead to inflation, and vice versa.

Which of the Following Statements About the Goals of the Macroeconomy