A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2025 · Q161 Mark
Governments may have price stability as a macroeconomic objective. What is meant by price stability?
AAll equilibrium prices are maintained in the long run.
BDemand-pull inflation cancels out any cost-push inflation.
COnly disinflation is present in the economy in the long run.
DProlonged periods of inflation and deflation are avoided.
✓ Correct answer
D: Prolonged periods of inflation and deflation are avoided.
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