A good reason for policy makers to pursue a goal of stabilizing economic activity is that ________.
A)high unemployment is always accompanied by high variability of unemployment
B)in a stable economy,there is little or no frictional unemployment
C)in a stable economy,there is little or no structural inflation
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Stabilizing economic activity is pursued for various reasons, but the statements given in options A, B, and C are not universally accurate or direct reasons for policy makers to pursue economic stability. High unemployment does not always correlate with high variability of unemployment, a stable economy can still have frictional unemployment as it's a natural part of the job market, and structural inflation is related to factors other than just economic stability.

A Good Reason for Policy Makers to Pursue a Goal