Macroeconomic Objectives

Question 1

What are the 4 macroeconomic objectives?

Answer 1

Economic growth
Low unemployment
Price Stability
Balance of Payments

Question 2

What are 4 other non-core macroeconomic objectives?

Answer 2

Sound government finances
Environmental sustainability
Productivity growth
Fair distribution of income

Question 3

What is meant by economic growth?

Answer 3

An increase in a country’s Gross Domestic Product compared to the previous year.

Question 4

What is meant by low unemployment?

Answer 4

As few people as possible not working that want to work and therefore on working-age benefits.

Question 5

What is meant by price stability?

Answer 5

Low rates of inflation- the rate of change in prices- 2% (+/- 1%) Bank of England Target.

Question 6

What is meant by a balance of payments?

Answer 6

The size of a trade deficit reducing or going into surplus, where export revenues are greater than import expenditure.

Question 7

What acronym can be used to remember the macroeconomic objectives?

Answer 7

TIGERS

Question 8

What does TIGERS stand for?

Answer 8

Trade
Inflation
Growth
Employment
Redistribution of Income
Stability

Question 9

What are macroeconomic objectives used to achieve?

Answer 9

Achieving macroeconomic stability.