2.6.1 Possible Macroeconomic objectives

Question 1

What are the 4 core Macroeconomic objectives?

Answer 1

Economic Growth – Sustainable growth (~2.5% in the UK) to improve living standards.

Low Unemployment – Aim for ~3% unemployment to ensure a productive workforce.

Low & Stable Inflation – Target 2% CPI for price stability.

Balance of Payments – Sustainable financing for long-term growth.

Question 2

What are the 3 other Macroeconomic objectives?

Answer 2

Balanced Government Budget– Controls debt for future borrowing.

Environmental Protection – Sustainable resource use and pollution control.

Income Equality – Reducing the gap between rich and poor for fairness.