Measurement of Macroeconomic Performance

Question 1

What are the 4 main macroeconomic objectives

Answer 1

Economic Growth
Minimising Unemployment
Price Stability
Balanced balance of payments

Question 2

What are 3 additional macroeconomic objectives that the government might have

Answer 2

Balanced Government budget
Greater income equality
Manage conflicts between macroeconomic objectives

Question 3

What are index numbers and what are they used for, and how

Answer 3

Index numbers are used to make comparisons between years, and to measure the magnitude of change over time. A base year is used and is then compared to other years.