Macroeconomic Policy

Question 1

What is supply-side policy?

Answer 1

Any government attempts to increase productivity and shift AS to the right.

Question 2

What are the 5 main macroeconomic objectives of the UK government?

Answer 2

1. Low stable inflation
2. Low unemployment/ full employment
3. Income equity- equitable distribution of income
4. Economic growth- and for it to be stable and sustainable
5. Competitive current account of the balance of payments

Question 3

In the UK what is the inflation target?

Answer 3

2%

Question 4

What are some additional objectives of macroeconomic policy?

Answer 4

1. Balancing the budget and reducing national debt
2. Improving economic wellbeing
3. Better regional balance in the UK economy (North vs South divide)
4. Improved access to public services- such as education
5. Improved competitiveness
6. Environmental sustainability