Conflict Between Economic Objectives

Question 1

How does economic growth and inflation conflict?

Answer 1

A rapid increase growth in the economy causes large increase in price due to a rapid demand increase

Question 2

How do inflation and unemployment conflict?

Answer 2

When unemployment is reduced and economy is almost at full capacity - there are fewer spare workers - and the demand for skill workers increases; to get these they’ll have to increase wages and they may push this price of production onto consumers