The macroeconomy

Question 1

What is an economy?

Answer 1

A complex system focussed on production of goods and services to satisfy needs and wants of consumers.

Question 2

What are the 7 macroeconomic objectives?

Answer 2

1. economic growth at an acceptable rate
2. unemployment low, employment high
3. inflation: price stability = CPI at 2%
4. balance of payments equilibrium
5. government budgets - fiscal prudence = balanced government budget
6. the environment (protection/sustainability)
7. income distribution - equitable distribution of income and wealth