2.6.1 Possible Macroeconomic Objectives

Question 1

Explain the macroeconomic objective of economic growth

Answer 1

Economic growth should be near the long run trend growth which is about 2.5%

Should be strong sustained and sustainable

Question 2

Explain the macroeconomic objective of unemployment

Answer 2

The goal is to reach near full employment around 5 to 3%

The objective is for employment to be productive and full employment and low unemployment

Question 3

Explain the macroeconomic objective of low and stable inflation

Answer 3

Set at 2% by CPI as it provides price stability for firms and consumers and helps them make decisions in long run

Question 4

Explain the micro economic objective of balance of payment equilibrium on current account

Answer 4

Current account should be balanced and there should be sustainable finance on current account

Question 5

What does tigers mean?

Answer 5

Trade
Inflation
Growth
Employment
Redistribution of income
Stability

Question 6

What are some non-core macroeconomic objectives?

Answer 6

Balanced government budget by controlling state borrowing national debt must not escalate

Protection of the environment provide long run environmental stability and show resources on exploited such as oil and gas and promotes sustainability

Greater income equality across regions minimise the gap between the rich and the poor

Question 7

How could these microeconomic policies be achieved?

Answer 7

Achieved through monetary or physical policy

Question 8

Currently, when it comes to inflation, what is the status of the UK and what changes needed?

Answer 8

Fish is too low unstable. There must be a change to return to the target.

Question 9

Currently, when it comes to unemployment, what is the status within the UK and what changes needed?

Answer 9

Unemployment status acceptable not so much for youth change needed maintain current policy

Question 10

Tell me when it comes to economic growth what is the status within the UK? What change is needed?

Answer 10

Economic growth is lagging behind long-term growth. The change needed is to accelerate real growth.

Question 11

Currently, what is the balance of payment status within the UK and what changes needed?

Answer 11

The deficit is too large change needed there must be a deficit reduction.