macroeconomic objectives

Question 1

Indicator: growth

Answer 1

Objective :
Strong: high incomes, high living standards
Sustained: continuous over time
Sustainable: the way in which we grow today can continue over time

Question 2

Indicator : unemployment

Answer 2

objective :
low unemployment
full employment

Question 3

Indicator : inflation

Answer 3

Objective :

Low = 2% +-1% in the uk

Stable= no deflation where the prices drop too far or no hyperinflation when prices are too high

Question 4

indicator : trade

Answer 4

bjective : balanced

Needs to be balanced between the value of exports and imports of goods and services

Trade deficit- where the value of imports exceed the value exports

Trade surplus - where the value of exports exceeds the value of imports

Question 5

Indicator : distribution of income

Answer 5

Objective : fair

Normative consideration depending on the government incharge at the time

Question 6

T.IG.E.R.S stand for…

Answer 6

Trade
Inflation
Growth
Employment
Redistribution of income
Stability (all 4 objectives being met at the same time)