Which of the following statements is correct,concerning price stability as a monetary goal?
A) In the long run, inconsistencies exists between the price stability goal and the other goals, such as high unemployment.
B) In the short run price stability does not conflict with the goals of high employment and interest-rate stability.
C) Neither A nor B is true.
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

In the long run, price stability is generally consistent with other goals like high employment, but in the short run, achieving price stability can conflict with goals like high employment and interest-rate stability.

Which of the Following Statements Is Correct,concerning Price Stability as a Monetary