The ultimate goal of macroeconomic policy is:
A)low and stable inflation.
B)full employment,output at potential,and low,stable inflation.
C)full employment,output above potential,and low,stable inflation.
D)zero unemployment and inflation.
E)low interest rates.

Question

Quizplus · Accepted Answer

The ultimate goal of macroeconomic policy is to achieve full employment, output at potential, and low, stable inflation. This is often referred to as the "triple mandate" or the "dual mandate with a Phillips curve trade-off." While low interest rates may be a tool used to achieve these goals, they are not the ultimate goal themselves. Zero unemployment and inflation, while desirable, are not realistic or sustainable in the long run.

The Ultimate Goal of Macroeconomic Policy Is