Macroeconomic Objectives Flashcards
1
Q
What are the 7 macroeconomic objectives
A
- Economic Growth
- Stable Inflation
- Low Unemployment
- low inequality
- Protection of the environment
- Balance of Payments
- Balanced government budget
2
Q
Why is rapid economic growth undesirable
A
it is unsustainable as the economy does not have enough resources. It can also lead to inflation
3
Q
Why is it important to keep a stable inflation rate
A
to maintain confidence in the economy
4
Q
What is the Uk target for stable inflation
A
2% annually
