Macroeconomic - objectives

Question 1

Explaining Economic Growth

Answer 1

Economic growth is the objective to help increase the overall output in an economy, in turn making the country money

Question 2

Low unemployment

Answer 2

Low unemployment is where almost all of the population is in a job

Question 3

Low and stable rate of inflation

Answer 3

A low and stable rate of inflation is necessary because it allows the country to have a valuable currency giving consumers and businesses confidence

Question 4

Balance of payments equilibrium

Answer 4

Where imports and exports are equal, this is sustainable for a nation because then they will make a profit and can reinvest it back into the countries inhabitants

Question 5

Balanced government budget

Answer 5

Allows for fair policies and targeted spending in order to get the best out of the economy and make its inhabitants better off

Question 6

Sustainability

Answer 6

The protection of the environment is important to the government as it helps to prevent future catastrophe for the next generations

Question 7

Income equality

Answer 7

Tries to prevent a small minority from earning all of the wealth and to prevent other citizens from falling into poverty whilst still encouraging economic growth.