Objectives of government economic policy Flashcards
1
Q
What are the objectives?
A
- create and maintain full employment
- achieve economic growth
- limit or control inflation
- attain satisfactory balance of payments
- achieve acceptable level of income and wealth distribution
- rising living standards
- sound government finances
- improvements in productivity
2
Q
3 main policy instruments
A
- monetary policy
- fiscal policy
- supply side policy
3
Q
What is policy indicator?
A
provides government with the information about the state of the economy and whether policy is on course to achieve its objectives
4
Q
When does economic stability occur?
A
when there is an absence of big swings in prices and output and jobs
