2.6.1 Macro-economic objectives Flashcards
1
Q
What is a policy?
A
The tools a government possess to meet their objectives
2
Q
What are the 4 main macro-economic objectives?
A
- maintain full employment
- control inflation
- high level of economic growth
- balance of payments in equilibrium
3
Q
What are the 3 additional macro-economic objectives?
A
- balance the govt budget
- distribution of wealth
- preserve the environment
4
Q
What is the inflation target?
A
2% CPI
5
Q
What is the economic growth target?
A
2.5%
6
Q
What is the employment target?
A
95-97% (frictional or seasonal)
