Which of the following statements about macroeconomic policy objectives is correct?


Which of the following statements about macroeconomic policy objectives is correct?
A . Governments always regard control of inflation as the most important policy objective
B . Conflicts between objectives mean that macroeconomic policy can never be regarded as successful
C . Expanding demand to reduce unemployment may mean that the balance of payments worsens
D . The pursuit of economic growth inevitably increases unemployment

Answer: C

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