Macroeconomics Objectives

Question 1

Growth

As an indicator

Answer 1

• Measured in GDP%
• Objective: Strong, Sustained, Sustainable (i.e. they want long term growth as oppose to short term)

Question 2

Uenmployment

As an indicator

Answer 2

• Objective: Low unemployment, full employment

Question 3

Inflation

As an Indicator

Answer 3

• Objective: Low and Stable inflation (+/- 1%)
• Measured using CPI (Consumer Product Index)

Question 4

Trade

As an Indicator

Answer 4

• Balanced Current Account
• (x=m)
  
  • x>m Trade Surplus
• x<m Trade Deficit

Question 5

Distribution of Income

As an indicator

Answer 5

• ‘Fair’
• Equitable distribution of income and wealth
• GINI Index
• A/A+B