Which of the following is considered one of the major economic and social goals in the United States?

• A. High Employment
• B. Price Stability
• C. Minimal Government Intervention
• D. Maximizing Profit

Answer: (B)

Price stability is a fundamental economic goal in the United States because it helps maintain the purchasing power of money and creates a predictable economic environment. When prices are stable, consumers and businesses can make decisions based on reliable information regarding costs and inflation. This stability encourages investment and spending, both of which are vital for economic growth.

Price stability also contributes to the overall health of the economy by avoiding the detrimental effects of high inflation or deflation. High inflation can erode consumer purchasing power, leading to decreased spending and uncertainty in the market, while deflation can lead to reduced consumer confidence and spending, creating a cycle that can hinder economic growth.

In contrast, while high employment, minimal government intervention, and maximizing profit are all important aspects of the economic landscape, they do not directly address the overarching need for consistency and predictability in pricing, which is crucial for long-term economic stability and growth.