Chapter 14: macroeconomic policy objectives Flashcards
1
Q
Policy objective
A
Government’s major macroeconomic objectives.
2
Q
Policy instrument
A
Techniques used to achieve policy objectives.
3
Q
The 4 policy objectives
A
Full employment
Economic Growth
Stable Prices
Balance of payments
4
Q
Boom/bust policy
A
the government using macroeconomic tools to stimulate and then contract the economy.
5
Q
Total factor productivity
A
The overall productivity of inputs used by a firm in producing a particular level of output.
6
Q
Deflation
A
A situation where prices persistently fall.
7
Q
Credit crunch
A
where borrowing becomes more expensive or unavailable.
