Economics · May / June 2017 · Paper 12 · Question 18

In trying to achieve one of its aims a government may make it difficult to achieve another aim. What is an example of this conflict?

1. AAchieving a more even distribution of income may prevent a rise in the average standard of living.
2. BAchieving an increase in economic growth may prevent full employment.
3. CAchieving full employment may prevent stable prices.
4. DAchieving stable prices may prevent a current account surplus on the balance of payments.

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