Measurement of macroeconomic performance and objective

Question 1

Government Objectives

Answer 1

-Price stability
-Growth of Real GDP
-Falling unemployment
-Increase standards of living
-stable balance of payments on the current account
-Equal distribution of income + wealth

Question 2

National income

Answer 2

measures the monetary value of the flow of output + services produced in an economy over a period of time

Question 3

What does national income help track

Answer 3

-rate of economic growth
-changes to living standards
-changes to the distibution of income

Question 4

Inflation

Answer 4

-sustained increase in the cost of living or the general price level leading to a fall in the purchasing power of money

Question 5

Unemployment

Answer 5

those people able, available and willing to work but cannot find a job despite searching

Question 6

Balance of payments

Answer 6

records all financial trasactions made between consumers, businesses + the government in one country with other nations

Question 7

Intems in the current account

Answer 7

-Trade balance in goods
-Trade balance in services
-Net Money Transfers
-Net Investment income from overseas assets

Question 8

Trade balance in goods

Answer 8

-Finished manufactured goods, components, taw materials
-Energy products, capital technology

Question 9

Trade balance in services

Answer 9

-Banking, Insurance, consultancy
-Tourism, Transport, Logistics
-Shipping, education, health
-Research, sultural arts

Question 10

Net Money Transfer

Answer 10

-Overseas aid/debt relief
-Private money transfers e.g from migrants

Question 11

Net Investment income from overseas assets

Answer 11

-profits, interest and dividends from investment in other countries e.g the profits from transnational businesses