7.3 Macroeconomic objectives of governments

Question 1

Macroeconomic objectives

Answer 1

The goals a government is aiming to achieve for the whole economy.

Question 2

Economic growth

Answer 2

An increase in a country’s productive potential, measured by an increase in it’s real GDP.

Question 3

Gross domestic product (GDP)

Answer 3

The total values of goods and services produced in a country in one year.

Question 4

Real GDP

Answer 4

Gross domestic product data adjusted for the effects of inflation.

Question 5

Inflation

Answer 5

An increase in the average price level of goods and services results in a fall of the value of money.

Question 6

Unemployment

Answer 6

When members of the working population are willing and able to work but are unable to find a job.

Question 7

Imports

Answer 7

Goods and services purchased from other countries.

Question 8

Exports

Answer 8

Goods and services sold to businesses or consumers in a different country.

Question 9

Exchange rate

Answer 9

The price of currency in terms of another.