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Potential Conflicts Between Government Aims


Analyse two possible conflicts between government aims.


Public Finance and Government Intervention

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I. 🍃Introduction
- Brief explanation of the topic
- Importance of understanding the relationship between economic factors

II. Lower unemployment vs. price stability
- Explanation of how lower unemployment leads to higher incomes
- Increase in total demand and demand-pull inflation
- Less spare capacity and wage demands increase
- Wage-price spiral

III. Economic growth vs. price stability
- Production increases faster than the increase in resources
- Increase in total demand leads to higher prices rather than increased output and employment

IV. Economic growth vs. environmental protection
- Output increases and consumption increases
- Rise in external costs, e.g. pollution, destruction of habitats

V. 👉Conclusion
- Summary of the main points
- Importance of balancing economic growth, unemployment, price stability, and environmental protection.

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