O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2017 · Q181 Mark
In trying to achieve one of its aims a government may make it difficult to achieve another aim. What is an example of this conflict?
AAchieving a more even distribution of income may prevent a rise in the average standard of living.
BAchieving an increase in economic growth may prevent full employment.
CAchieving full employment may prevent stable prices.
DAchieving stable prices may prevent a current account surplus on the balance of payments.
✓ Correct answer
C: Achieving full employment may prevent stable prices.
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