2.6.1: Possible Macroeconomic Objectives Flashcards
1
Q
What are the 4 main macroeconomic objectives?
A
-Economic Growth: UK long run trend is 2.5%.
-Low Unemployment: UK aims for an unemployment rate of 3%.
-Low and Stable Rate of Inflation: UK aims for an inflation rate of 2%.
-Balance of Payments Equilibrium on Current Account: governments try to avoid a large deficit.
2
Q
What are 3 additional macroeconomic objectives?
A
-Balanced Government Budget: this ensures the government keeps control of state borrowing.
-Protection of the Environment: sustainable use of resources.
-Greater Income Equality: generally associated with a fairer society.