Macroeconomic objectives

Question 1

Sustained increase in real economic growth

Answer 1

-sustained rate of growth can be maintained without creating other significant economic problems
-Measured through real GDP statistics

Question 2

Low unemployment

Answer 2

-Unemployment levels should not reach levels that seriously hinder economic output
-Measured by unemployment rate

Question 3

Low and stable inflation

Answer 3

-The increase in the price of goods and services in a given year does not fall lower than 1% or higher than or higher than 3%
-Target of 2 %
-Measured by CPI

Question 4

Balanced government budget

Answer 4

When government revenues and income are roughly the same
-Measured by financial statements of her majestys trust

Question 5

Balance of payments equilibrium on current account

Answer 5

-When the value of exports are similar to the value of imports
-Investment incomes and net transfers put the current close to zero (no deficit or surplus)

Question 6

Greater income equality

Answer 6

-When lower income demographics do not see great disparity between their levels of income and that of high earners
-Gini coefficient

Question 7

Environmental protection

Answer 7

-Ensuring the world’s climate and environment is sustainable