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Bangladesh. Most government aim for full employment and stable prices. Which of those two aims should your government seek to achieve in the coming year
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7. Most government aim for full employment and stable prices. Which of those two aims should your government seek to achieve in the coming year and how might this choice affect the other aim? A. Full employment is the level of employment a country achieves when there exists no involuntary unemployment in the economy. Stable prices means that the general price levels of an economy remains constant. However, these two variables often conflict with one another because to bring about changes in one of them the other objective must be sacrificed. To eradicate involuntary unemployment i.e. cyclical unemployment, structural unemployment; it is necessary to sustain aggregate demand (AD) and the same production structure in the economy. However sustaining AD will not allow general price levels to remain and structural changes must occur to help the economy diversify, develop and use its resources to its most potential use. Bangladesh is a developing economy and initially...
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