2.6.1 - Possible Macroeconomic Objectives

Question 1

What Are The Macroeconomic Objectives?
(7 Points)

Answer 1

~ Economic growth.

~ Low unemployment.

~ Low and stable inflation.

~ Balance of payments equilibrium on current account.

~ Balanced government budget.

~ Protection of the environment.

~ Greater income equality.

Question 2

Describe ‘Economic Growth’ As A Macroeconomic Objective
(3 Points)

Answer 2

~ Strong.

~ Sustained.

~ Sustainable.

Question 3

Describe ‘Low Unemployment’ As A Macroeconomic Objective
(2 Points)

Answer 3

~ Low unemployment.

~ Full employment.

Question 4

Describe ‘Low & Stable Inflation’ As A Macroeconomic Objective

Answer 4

2% (+/- 1%).

Question 5

Describe ‘BOP Equilibrium On The Current Account’ As A Macroeconomic Objective
(2 Points)

Answer 5

~ Exports > Imports = Current account surplus.

~ Import > Exports = Current account deficit.