Conflicts Between Macroeconomic Objectives

This topic explains why governments often face trade-offs when trying to achieve multiple macroeconomic objectives at the same time. It focuses on conflicts between low unemployment and low inflation, high economic growth and low inflation, growth and environmental sustainability, and growth and equity in income distribution. The text uses AD/AS reasoning and the Phillips curve to show short-run trade-offs, stagflation from supply shocks, and how supply-side policies can shift unemployment dynamics. It also discusses how controlled inflation and sustainable growth strategies can reduce some of these conflicts.