Possible macroeconomic objectives (CH 21)

Question 1

What 4 main objectives do the government have to provide macro stability?

Answer 1

• Economic Growth
• Low unemployment
• Low and Stable rate of inflation
• Balance of payments equilibrium on current accounts

Question 2

Apart from the main objectives, what other objectives might the government have?

Answer 2

• Balance government budget
• Protection of the environment
• Greater income equality