Macroeconomic objectives:

Question 1

What are the seven macro-economic objectives?

Answer 1

• Sustained increase in real economic growth
• Low unemployment
• Low and stable inflation
• A balanced govt budget
• Balance of payments equilibrium on current account
• Greater income equality
• Environmental protection

Question 2

Sustained increase in real econ growth:

Answer 2

• Regular growth of 2% or more
• Measured using real gdp method

Question 3

Low unemployment:

Answer 3

• Keeping unemployment low to not hinder economic growth

Question 4

Low and stable inflation:

Answer 4

• To stay at roughly 2%

Question 5

A balanced govt budget;

Answer 5

• When gov revenues are roughly equal to gov spending

Question 6

Balance of payments equilibrium on current account:

Answer 6

• When imports and exports are roughly equal
• Investment income and net transfers are roughly equal

Question 7

Greater income equality:

Answer 7

• When lower income earners dont see a large disparity between their income and that of higher earners

Question 8

Environmental protection:

Answer 8

• Ensuring the global climate and environment is sustainable