Economic Policy Objectives

Question 1

target rates

Answer 1

EG: 3.25% -3.5%
inflation: 2-3%
UE: 4.5%

Question 2

roles of the government

Answer 2

provision of public goods and services
provision of welfare services
regulation of business enterprise
macroeconomic management

Question 3

macroeconomic objectives

Answer 3

sustainable rate of economic growth 
price stability
full employment 
efficient allocation of resource
equitable distribution of income and welfare

Question 4

RBA policy objectives

Answer 4

stability of the currency of Australia (price stability)
The maintenance of full employment in Australia
The economic prosperity and welfare of the people in Australia

Question 5

conflicting economic objectives

Answer 5

price stability and full employment
economic growth and price stability
economic growth and structural UE
economic growth ad income distribution

Question 6

compatible economic

Answer 6

economic growth and full employment
full employment and income distribution
price stability and economic growth
economic growth and allocation of resources

Question 7

recognition lag

Answer 7

compiling data, analyzing it, and publishing the data

Question 8

decision lag

Answer 8

deciding what to do with the data
long - fiscal policy
short - monetary policy

Question 9

effect lag

Answer 9

the time taken for the policy to have an effect