Because Reducing Both Unemployment and Inflation Simultaneously Are Conflicting Goals

question 36

Multiple Choice

Because reducing both unemployment and inflation simultaneously are conflicting goals:

• A)there is a policy that will allow policymakers to achieve either objective.
• B)aggregate demand policy will allow policymakers to achieve one of these objectives, but not both.
• C)aggregate demand policy will allow policymakers to achieve both objectives, but only if it is expansionary.
• D)aggregate demand policy will allow policymakers to achieve both objectives, but only if it is contractionary.