5.1 Government macro policy objectives

Question 1

What are the macroeconomic objectives?

Answer 1

Price stability
Low unemployment
Economic growth

Question 2

What indicators tell you if an economy is performing? (pneumonic)

Answer 2

TIGERS
Trade - whether exports and imports are balances
Inflation - whether it is low and stable (2%)
Growth - Strong, sustained, and sustainable
Employment - Low unemployment, as close to full employment as possible
Redistribution of income - whether it is fair or not
Stability