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.

Question

Quizplus · Accepted Answer

The major goal of short-run macroeconomic policy is to move the economy toward the production possibilities curve by increasing output and reducing unemployment. A shift in the production possibilities curve outward is a long-term goal, while a shift in the aggregate supply curve to the left indicates a decrease in the overall level of output and economic growth, which is not a desirable goal.

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