Which one of the following changes in macroeconomic performance is most likely to demonstrate a short-run trade-off between different government policy objectives?
An increase in economic growth that is accompanied by a widening deficit on the current account of the balance of payments.
A decrease in the rate of inflation that occurs alongside an improvement in the government's fiscal balance.
An increase in labor productivity that leads to a rise in international competitiveness.
A reduction in the rate of unemployment achieved alongside a falling rate of inflation.
