4: Macroeconomic Objectives

Question 1

Objectives of Australia Government

Answer 1

• Sustainable Economic Growth
• Price Stability
• Full Employment
• Equitable Distribution of Income
• The Efficient Use of Resources

Question 2

Complementing Objectives

Answer 2

• EG vs FE
• EG vs EID
• FE vs EG
• FE vs EID
• Price Stability vs EG & FE
• PS vs EID
• Efficient Allocation of Resources vs EG
• EAoR vs PS
• EAoR vs EID

Question 3

Conflicting Objectives

Answer 3

• EG vs Structural Unemployment (FE)
• EG vs PS
• FE vs PS
• PS vs EG & FE
• EID vs EG
• EID vs FE
• EAoR vs EID

Question 4

Time Lags

Answer 4

• Recognition Lag
• Decision Lag
• Action Lag
• Effect Lag