If an economy were to pursue a policy of maintaining full employment, it would likely have to forgo:
A) price stability.
B) full production.
C) economic growth.
D) maximum current output.

Question

Quizplus · Accepted Answer

Maintaining full employment often leads to inflationary pressures because as demand for labor increases, wages tend to rise. This can lead to higher production costs and, consequently, higher prices, making it challenging to achieve price stability.

If an Economy Were to Pursue a Policy of Maintaining