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2.6.4 Conflicts and trade-offs between objectives and policies

Why do most conflicts between macroeconomic objectives arise?

A

Flexible exchange rates prevent several objectives from improving simultaneously in the short run.

B

Spare productive capacity limits how many objectives can improve simultaneously in the short run.

C

Unlimited consumer demand prevents any objectives from improving simultaneously in the short run.

D

Finite productive capacity limits how many objectives can improve simultaneously in the short run.

2.6.4 Conflicts and trade-offs between objectives and policies Flashcards

  1. A Level
  2. /Economics
  3. /2.6.4 Conflicts and trade-offs between objectives and policies

Flashcards for Edexcel A A Level Economics 2.6.4 Conflicts and trade-offs between objectives and policies, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 26 cards, matched to the Edexcel A A Level Economics (9EC0) specification.