2.6 - Macroeconomic objectives and policies

Question 1

What are the 7 macroeconomic objectives?

Answer 1

1. Economic growth
2. Low and stable inflation (2%)
3. Low unemployment (around 3%)
4. Balance of payment on current account
5. Balanced government budget
6. Equality of income
7. Protection of the environment

Question 2

What are the demand side policies?

Answer 2

1. Monetary policy - interest rates / quantitive easing
2. Fiscal policy - government spending and taxation