macroeconomic objectives

Question 1

macroeconomic objectives TIGERS

Answer 1

balance of TRADE
inflation
economic GROWTH
unEmployment
Redistribution of income (think kuznets curve)
(stability)

Question 2

non core macroeconomic objectives 2

Answer 2

environmental welfare
government budget

Question 3

possible conflicts (4)

Answer 3

• inflation and unemployment (use phillips curve)
• economic growth and environment
• inflation and equilibrium on bop
• economic growth and income equality

Question 4

free market policies (4)

Answer 4

• deregulation
• privatization
• reduction in tax
• promoting competition

Question 5

interventionist policies 3

Answer 5

• investment in merit goods
• incentives to encourage investment
• infrastructure investment

Question 6

demand side policies

Answer 6

• fiscal policy
• monetary policy
• devaluation of currency
  -quantative easing (increasing money supply)

Question 7

fiscal policy

Answer 7

use of taxes, government spending and government borrowing

Question 8

monetary policy

Answer 8

use of money supply and interest rates

Question 9

reflationary policites

Answer 9

policies aimed at increasing AD
increasing economic growth

Question 10

deflationary policies

Answer 10

policies aimed at decreasing AD, can decrease inflation and preventing market bubbles

Question 11

interest rates effect on economy

Answer 11

high - less borrowing - less spending - AD less

Question 12

money supply effect

Answer 12

increase - more borrowing - less interest rates - ecouraging borrowing