Chapter 11.3 Flashcards
1
Q
What are the potential conflicts between macroeconomic objectives?
A
Low unemployment and low inflation
High economic growth and low inflation
High economic growth and environmental sustainability
High economic growth and equity in economic distribution
2
Q
How can the conflict between low unemployment and low inflation be presented?
A
The Phillips curve
2
Q
How is the conflict between economic growth and inflation presented?
A
Growth in AD in the AD/AS curve, or when AD approaches/passes potential output in the Keynesian model
