Macroeconomic objectives and policies 2.5 Flashcards
1
Q
What are the 7 UK Macroeconomic objectives
A
- Sustainable economic growth (2.5%)
- Low inflation (2%)
-Reduce budget defecit
-Reduce inequality
-Stable current account
-Environmental
2
Q
What is economic growth
A
An increase in real GDP. THat is an increase in the real value of goods and services produced in an economy in a given period of time
3
Q
What is inflation
A
A general increase in price and fall in purchasing power
4
Q
What is a fiscal/budget deficit
A
Fiscal deficit is when the government spends more money than it collects in taxes
5
Q
What is the current account defecit
A
When a countrys imports are higher than their exports
6
Q
A
