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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.

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