Economics 0455 · IGCSE · The macroeconomic aims of government

The macroeconomic aims of government — practice question

Why could the macroeconomic objective of full employment clash with the objective of stable prices?

  • AFull employment leads to higher cost of imports.
  • BFull employment leads to increased income inequality.
  • CFull employment leads to increases in wages.
  • DFull employment leads to lower exports.

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