The possibility of conflict arising, at least in the short run, when attempting to achieve these objectives
Governments often cannot hit all four economic targets at once. Policies that fix one problem can make another worse.
Real World
In 2021–22, the UK furlough scheme kept unemployment low, but the resulting surge in consumer spending contributed to inflation hitting 11.1% by October 2022 — a textbook example of the unemployment-inflation conflict.
Exam Focus
For 'evaluate' questions on conflicts, always consider whether the conflict is short-run or long-run — examiners reward this distinction.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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