2.6 Introduction to macroeconomic policy Flashcards
1
Q
What are the main macroeconomic objectives and what are their recommended statistics?
A
- Economic growth
- Low unemployment
- Low and stable inflation
- Balance of payments and equilibrium of current accounts
2
Q
What is fiscal policy and what does it aim to do?
A
3
Q
What is monetary policy and what does it aim to do?
A
4
Q
What are supply-side policies and what do they aim to do?
A
5
Q
Explain the trade-off between inflation and unemployment
A
6
Q
Explain the trade-off between economic growth and negative externalities
A
7
Q
What are the main issues Governments face when managing the macroeconomy
A
8
Q
A
