Objectives Of Government Economic Policies Flashcards
1
Q
What are the 4 economic objectives
A
Economics growth, low inflation, low employment, balance of payments
2
Q
What is economic growth
A
Governments try to maximise sustainable economic growth to increase living standards and help create employment
3
Q
What is inflation
A
When there is an increase in price level of goods/services over time
4
Q
Why does the government want low unemployment
A
Because it means more people are working which helps the economy grow.
5
Q
What is meant by balance of payments
A
The difference between all the money entering and exiting a country over a period of time
6
Q
A
