Macroeconomic Objectives

Question 1

What economic indicators can be used to tell us how the economy is preforming

Answer 1

-growth
-Unemployment
-inflation
-trade
-distribution of income

Question 2

How should growth Be in a well preforming economy

Answer 2

Growth should be strong, sustained and sustainable

Question 3

How should unemployment Be in a well preforming economy

Answer 3

-unemployment should be low
-employment should be high

Question 4

How should inflation Be in a well preforming economy

Answer 4

Inflation should be at a low stable 2 percent to match government goals

Question 5

How should trade Be in a well preforming economy

Answer 5

Trade should be balanced

Question 6

How should distribution of income Be in a well preforming economy

Answer 6

Should be fair

Question 7

What are some Non-core objectives that many economies such as the UK may focus on

Answer 7

-sound government finances
-environmental sustainability
-productivity growth