The ultimate goal of macroeconomic policy is:
A) zero inflation.
B) full employment; output at potential; and low, stable inflation.
C) full employment; output above potential; and low, stable inflation.
D) zero unemployment and inflation.
E) low interest rates.

Question

Quizplus · Accepted Answer

The ultimate goal of macroeconomic policy is to achieve full employment, output at potential, and low, stable inflation. This means that the economy is operating at its highest level of production and employment, while also maintaining a stable level of prices. Zero inflation or unemployment may not be feasible or desirable as it could lead to other economic problems. Low interest rates can be a tool to achieve the ultimate goal, but they are not the ultimate goal itself.

The Ultimate Goal of Macroeconomic Policy Is