What accurately reflects the primary goal of monetary policy?

The primary goal of monetary policy is to control inflation and stabilize GDP. This is because monetary policy, which is implemented by a nation's central bank, focuses on managing the supply of money and interest rates in the economy. By doing so, it aims to create a stable economic environment that fosters sustainable growth and avoids the extremes of inflation or deflation.

Controlling inflation is crucial because high inflation erodes purchasing power and can lead to economic instability. Conversely, stabilizing GDP ensures that the economy can grow at a steady pace without overheating or falling into recession. Central banks adjust interest rates and manipulate the money supply to achieve these objectives, ultimately influencing overall economic activity.

While influencing employment levels may be a secondary effect of effective monetary policy, the direct goals focus on inflation and GDP stability. Therefore, this choice accurately captures the essence of monetary policy's primary purpose.