Macroeconomic Objectives

Question 1

Sustainable econonomic growth

and how much growth per annum

Answer 1

When there is consistent GDP growth over each time period, not exceeding or lagging behind the range

3-4%

Question 2

What is

Full employment

Answer 2

Where the unemployment rate has been minimised.

4-5% unemployment

Question 3

External Stability

Answer 3

When Australia has met it’s international liabilities - ie debt owed to other countries, international relationship obligations.

Question 4

Internal Stability

Answer 4

Australia tries to maintain NAIRU/Full Employment and Price Stability (inflation between 2-3%)
And also wage growth should be matching the inflation rate othewise money is devaluating.

Question 5

Improved living standards

Answer 5

The government strives for its people to have this… Whether it be affording groceries, access to housing etc… ties in with the other objectives really

Can connect the objectives with eachother. If wage growth is below inflation how are living standards affected?

Question 6

Equitable distribution of income & wealth

Answer 6

Economic equality in society pretty much..