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 and full employment.
C)Shift the aggregate supply curve to the left.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Short-run macroeconomic policy aims to move toward full employment and the production possibilities curve by increasing demand and reducing unemployment. This is typically achieved through fiscal or monetary policy measures. Options A and C are incorrect as they relate more to long-run growth and supply-side policies. Option 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