2.6.1 Possible macroeconomic objectives Flashcards
1
Q
What are the 7 macroeconomic policies?
A
- low unemployment
- low government borrowing
- stable 2% inflation
- stable exchange rate
- economic growth
- minimizing inequality
- balance of payments
2
Q
Which of these are the 4 ‘main’ objectives of macroeconomic stability?
A
- low unemployment
- stable 2% inflation
- economic growth
- balance of payments
3
Q
What is the long run trend rate of Economic Growth?
A
average sustained rate of economic growth
4
Q
Which economic agent decides the target rate of inflation?
A
Bank of England
5
Q
Which measure does the Bank of England use here?
A
CPI and RPI
6
Q
Why do governments aim for equilibrium on the current account?
A
to prevent a recession or a boom
7
Q
Why does the government aim for a balanced government budget?
A
they aim to meet aims of supply and demand without being in debt
8
Q
Why do governments aim for environment sustainability?
A
less pressure on health care
preservation of resources
healthier workforce
