2.6

Question 1

Macroeconomic Objectives

Answer 1

Trade - Balanced trade - (exports = imports, balance of payments equilibrium on current account)

Inflation - Price stability (inflation target is 2% on Consumer Price Index (CPI)

Growth - Strong Economic growth (Annually 2%+ Real GDP growth)

Employment - Full employment/Low unemployment - Labour Force Survey

Redistribution of Income and Wealth - reduction in inequality measured by reduction in Gini Coefficient.

Government finances - balanced budget

Environment - Protection of the environment (UK wants to have net-zero carbon emissions by 2050 to stop the negative effects of climate change.

Linving standards - UK aims to have a better National Wellbeing Score and their own National Wellbeing.

Main Priorities: Growth, employment, inflation