2.6.1

Question 1

Long run trend of economic growth in the UK

Answer 1

2.5%

Question 2

What unemployment rate are the UK aiming for

Answer 2

Around 3%
The labour force should also be employed in productive work

Question 3

Government inflation target

Answer 3

2%
Measure with CPI

Question 4

Balance of payments equilibrium on current account

Answer 4

A balance of payments equilibrium on the current account means the country can sustainably finance the current, which is important for long term growth

Question 5

Balanced government budget

Answer 5

This ensures the government keeps control of state borrowing, so the national debt doesn’t escalate

Question 6

Protection of the environment

Answer 6

Aims to provide long run environmental stability

Question 7

Greater income equality

Answer 7

Income and wealth should not be distributed equitably, so the gap between the rich and poor is not extreme
It is generally associated with a fairer society