The diagram below shows an economy's short-run Phillips curve (SRPCSRPCSRPC).
A government implements an expansionary monetary policy that successfully increases aggregate demand, resulting in a transition from point P P\,P to point QQQ.
Which of the following best describes the macroeconomic policy conflict illustrated by this transition?
Reducing the rate of unemployment is achieved at the expense of price stability, illustrating a short-run policy conflict between full employment and low inflation.
Controlling inflation is achieved at the expense of economic growth, illustrating a short-run policy conflict between price stability and real output expansion.
Reducing the rate of unemployment is achieved at the expense of long-run productive capacity, illustrating a conflict between short-run demand management and supply-side growth.
Controlling inflation is achieved at the expense of a current account surplus, illustrating a policy conflict between price stability and the balance of payments.