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Explain why the three goals of a healthy economy are so difficult to achieve?

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Final answer:

The three goals of a healthy economy - economic growth, low unemployment, and low inflation - are difficult to achieve concurrently because they can counteract each other, and changes aimed at achieving one goal can have unintended consequences on the others.

Step-by-step explanation:

Achieving the three goals of a healthy economy - economic growth, low unemployment, and low inflation - is a complex task because they can often counteract each other. For instance, rapid economic growth can lead to lower unemployment, but it may also cause inflation to rise as demand for goods and services increases and outstrips supply. Conversely, measures taken to lower inflation, like increasing interest rates, can slow down economic growth and potentially increase unemployment.

Economic policies must find a balance between these goals, and changes in one area can have unintended consequences in others. Policy-makers use tools like fiscal and monetary policies to manage these trade-offs, but external factors like technological changes, natural disasters, and global economic conditions can disrupt even the best-laid plans and make it challenging to maintain equilibrium.

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