Inflation, Recession and Unemployment

Question 1

what are the goals of the government

Answer 1

To Ensure:
1. Prices are Stable
2. unemployment is at a minimum
3. There is economic activity in the economy
4. There is a balance of payment equilibrium

Question 2

Macroeconomics

Answer 2

the study of the economy as a whole rather than the individual market.

Question 3

Fiscal policy

Answer 3

is the use of government spending and taxation to control Aggregate demand in the economy.

Question 4

Aggregate Demand

Answer 4

the total demand in the economy

Question 5

Monetary Policy

Answer 5

is the use of interest rates and other direct measures to control the money supply and consequently, aggregate demand.