Magical triangle

The Magical triangle depicts three important macro-economic goals for the government in the neo-Keynesian teachings:

• Price stability
• Full employment
• Balanced Budget

This triangle seems to be 'magical', as it is impossible to fulfill all three goals at the same time. Later on, a couple more goals were added: Improvement of the economic growth, enforcement of the economic structure and a more balanced distribution of the economic activity over the different regions of a country.