Macro Objectives of Government (Growth, Unemployment, Inflation, Trade - TIGERS ) Flashcards
(20 cards)
What is macroeconomics?
The study of the performance and behavior of an economy as a whole, focusing on national indicators like growth, unemployment, and inflation.
What does the acronym TIGERS stand for in macroeconomic objectives?
Trade balance
Inflation
Growth (economic)
Employment
Redistribution of income
Stability
What is economic growth?
An increase in the output of goods and services in an economy, often measured by rising income or GDP.
What is unemployment?
The number of people who are actively seeking work but are unable to find jobs.
What is inflation?
The rate at which the general level of prices for goods and services is rising.
What is a healthy inflation rate for most developed economies?
Around 2% (+/- 1%)—low and stable.
What does a balanced trade mean?
When the value of a country’s exports is roughly equal to the value of its imports.
What does “redistribution of income” refer to?
How fairly income is spread among individuals or households in an economy.
What does “stability” refer to in macroeconomics?
Avoiding large swings in inflation, employment, and output; maintaining consistent economic performance.
Are macroeconomic objectives normative or positive?
Normative—they involve value judgments (e.g., what is considered a “fair” income distribution).
What are the six core macroeconomic objectives (TIGERS)?
Trade balance
Inflation control
Growth (economic)
Employment (low unemployment)
Redistribution of income (fairness)
Stability (economic)
What is the target for inflation in most developed economies?q
Around 2% (+/- 1%), aiming for low and stable inflation.
What is the goal for employment in macroeconomic policy?
Full employment, meaning everyone who wants a job can find one.
What does a fair redistribution of income aim to achieve?
Reduce inequality and ensure all groups benefit from economic growth.
What does stability mean in macroeconomics?
Avoiding major fluctuations in output, prices, and jobs—maintaining steady performance.
What is meant by sound government finances?
Ensuring the government can manage its spending and borrowing responsibly to avoid long-term debt problems.
What is environmental sustainability in macroeconomic policy?
Ensuring economic growth doesn’t harm the environment—protecting land, air, water, and ecosystems for future generations.
What is productivity growth?
An increase in output per worker per hour, boosting efficiency and long-term economic potential.
Why is productivity growth important?
It leads to higher wages, lower costs, and stronger economic growth over time.
Are non-core objectives like sustainability and productivity becoming more important?
Yes—many economists and policymakers now see them as essential for long-term wellbeing.
