2.1.1 The objectives of government economic policy Flashcards
1
Q
Objectives of econ policy (6)
A
- Minimising unemployment
- economic growth
- price stablility
- achieveing equitable distribution of income
- budget balancing
- balencing BoP
2
Q
Objectives of econ policy
Minimising umemployment
A
people who are of working age, looking for a job but are unable to find one
3
Q
Objectives of econ policy
equitable distribution of income
A
ensure gap between richest and poorest doesnt become excessively wide
4
Q
Objectives of econ policy
price stability
A
how fast average level of prices of a range of goods or services rises over 1 year
5
Q
Objectives of econ policy
economic growth
A
how value of output produced in economy, usually over 1 year period
6
Q
Objectives of econ policy
balencing budget
A
gov wants value of expenditure and taxation to be the same
7
Q
Objectives of econ policy
Balancing BoP…
A
on current account
8
Q
Conflicts in achieving
A
- simaltanously is difficult
- may only exist in ST, although argues its possible to achive all in LT
e.g. minimising umemploymenT + achieving price stability = one at expense of other.
