Ace the 2025 Michigan Teacher Certification in Social Studies – Elevate Your Teaching Dreams!

Question: 1 / 400

Which of the following is NOT a goal of economic policymakers?

Keep prices stable

Promote rapid deflation

The goal of promoting rapid deflation does not align with the objectives typically pursued by economic policymakers. Generally, policymakers aim to maintain price stability and avoid deflation because rapid deflation can lead to decreased consumer spending and investment, as people anticipate further price drops. This can create a vicious cycle that stifles economic growth and leads to increased unemployment.

In contrast, keeping prices stable is essential for ensuring predictable economic conditions, while limiting unemployment is crucial for maximizing workforce participation and productivity. Additionally, sustaining economic growth over time is fundamental to improving living standards and fostering overall economic health. These objectives work together to create a balanced and thriving economy, which is why promoting rapid deflation is not considered a goal among them.

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Limit unemployment

Keep the economy growing over time

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