Question:

Which of the following is not a generally agreed upon macroeconomic goal?

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A. rapid economic growth

b. high employment

c. low inflation

d. stable prices

e. zero unemployment

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2 ANSWERS


  1. e. zero unemployment

    Zero unemployment may actually be undesirable for an economy since many economists believe there is a trade off between unemployment and the inflation rate. Economists also believe there is a "natural unemployment rate" when the economy is at a long run level.  


  2. A. rapid economic growth - (first priority)

    e. zero unemployment - (second priority)

    Economic growth shouldn't necessarily be "rapid" (depends on degree of country development), because it will cause a lot of imbalances in economy.

    Zero unemployment means there is no structural and frictional unemployment which make economy unable to change.

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