AOS2: Domestic Macroeconomic goals

Question 1

KKP: 1

Define the goal of a “Strong and sustainable economic growth.”

Answer 1

The fastest rate of economic growth (3-3.5% rise in real GDP) that will stimulate enough employment but not harm living standards through inflationary pressures, external pressures, and environmental degradation.

If GDP growth is less than this target, then economic growth is sustainable but not strong.
If GDP growth exceeds this target, then economic growth is strong but not sustainable.