Intro To Macro

Question 1

What are the 4 main ..

Answer 1

Economic growth, unemployment, inflation, balance of payments

Question 2

What is economic growth and its aim

Answer 2

GDP measures the monetary value of country’s goods and services.
AIM- sustained high economic growth

Question 3

What is unemployment its aim

Answer 3

Of the working age population, those who are willing and able to work
AIM- at or below 3%

Question 4

What is inflation and its aim

Answer 4

Increase in average price of an economy this cab decrease the purchasing power of consumers money and firms investment
AIM-2%

Question 5

What is balance of payments and the aims

Answer 5

Value of imports compared to the value of exports.

AIM- ideally a current account surplus but a current account deficit can indicate huge growth going on. It depends on the size of the current account deficit as a % of GDP