Goals Of The Economic Policies Flashcards
1
Q
What are the goals of economic policies?
A
- The goals of economic policies comprises of value judgements of what economic policy should strive to achieve.
- Thus, it falls under the realm of normative economics.
2
Q
Why are there disagreements regarding the Economic Policies?
A
As it falls under the realm of normative economics.
3
Q
Among widely disagreed economic goals, which are sone of the universally accepted ones?
A
- Economic Growth
- Price Stability
- Full Employment
4
Q
What is economic growth?
A
The increase in the incomes of all the consumers and firms overtime after having accounted for inflation.
5
Q
What is full employment?
A
When every member of the labour force who wants to work finds work is wat full employment is.
6
Q
What is price stability?
A
The goal of price stability is to maintain the general price level from increasing that is inflation or decreasing that is deflation.
