Macroeconomic Government Objectives

Question 1

What are the 4 main macroeconomic objectives

Answer 1

1. Strong, sustained and sustainable economic growth
2. Low stable inflation
3. Low unemployment
4. Stable balance of payments

Question 2

What is the objective for growth to be?

Answer 2

Growth to be strong, sustained and sustainable

Question 3

Define a recession

Answer 3

Two consecutive quarters of negative economic growth

Question 4

How do politicians use economic growth

Answer 4

Politicians use economic growth as a metric of the effectiveness of their policies and leadership

Question 5

What was the GDP growth of the UK economy in 2021 ?

Answer 5

7.6%

Question 6

What is the balance of payments for a country

Answer 6

This is a record of all financial transactions that occur between it and the rest of the world

Question 7

What is the current account

Answer 7

Record of financial transactions related to exports and imports of goods and services

Question 8

if exports > imports this leads to a…

Answer 8

current account surplus

Question 9

if imports > exports this leads to a…

Answer 9

current account deficit (this can be more problematic in the long run)