Which of the following is a major goal of short-run macroeconomic policy?
A)Shift the production possibilities curve outward.
B)Move toward the production possibilities curve.
C)Shift the aggregate supply curve to the left.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

The major goal of short-run macroeconomic policy is to move the economy toward the production possibilities curve, which represents the maximum potential output of the economy. This is typically achieved by using monetary and fiscal policies to stimulate demand and encourage economic growth. Shifts in the production possibilities curve or aggregate supply curve are typically long-term effects of structural changes in the economy, rather than short-term policy goals. Therefore, choices A and C are incorrect. Choice D is also incorrect, as there is always a goal of short-run macroeconomic policy, even if it may not always be achieved.

Which of the Following Is a Major Goal of Short-Run