Why do the five debates over macroeconomic policy exist?
A) mostly because economists disagree over basic issues such as the importance of saving for economic growth
B) mostly because there are tradeoffs and people disagree about the best way to deal with them
C) mostly because economic policies have conflicting effects on various groups of people
D) mostly because people fail to clearly see the benefits or the costs of most changes

Question

Quizplus · Accepted Answer

The five debates over macroeconomic policy exist mostly because there are tradeoffs and people disagree about the best way to deal with them. All macroeconomic policies involve some degree of tradeoff between different economic variables, such as inflation and unemployment, or short-term and long-term economic growth. Different people and interest groups may have different priorities and values, leading to disagreements over the best course of action.

Why Do the Five Debates Over Macroeconomic Policy Exist