4.1, 4.2 The Role of Government, Macroeconomic Aims

Question 1

Explain the role of local government in a mixed economy

Answer 1

• Responsible for delivering government services (health, public services, refuse collection, etc)
• Are funded by central government
• Held accountable by voters

Question 2

Explain the role of national government in a mixed economy

Answer 2

Find best combination of policies to achieve macroeconomic aims

Question 3

Explain the role of international government in a mixed economy

Answer 3

• International trade
• Protect domestic industry/help it compete internationally

Question 4

What are the five macroeconomic aims?

Answer 4

• Economic growth
• Low unemployment
• Low/stable inflation
• Current account balance
• Redistribution of income