Main objectives
- Created by: Itwasntme193
- Created on: 15-02-21 11:42
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- Main Govt Objectives
- *some objectives can conflict each other, shocks can knock and model and there are differing priorities amongst economists.
- Balanced trade position
- total X of domestic products= total M of overseas products
- govts want it so money doesn't leak out of the domestic economy.
- BoP= record of all transactions between one country and all other countries for 12 months.
- Current Account- transactions in the current time period
- financial and capital account- movements of money and investments across multiple, future time periods
- Main Govt Objectives
- *some objectives can conflict each other, shocks can knock and model and there are differing priorities amongst economists.
- Low and stable inflation
- persistent rise in avg prices, measured by CPI.
- low + stable so there is higher confidence for consumers and firms.
- sustained change in general price level
- relative inflation compares UK rate with other countries
- Growth in GDP= higher s.o.l
- rate of change in real GDP (output=Y=expenditure)
- govts want stable +ve growth in real GDP to increase confidence so the economy can employ the population and remain internationally competitive.
- increases in GDP can be measured by increase in production, increase in income or increase in expenditure.
- economy isn't always stable, growth can be volatile or -ve, causing I to decrease as well as C.
- Full employmment / low, unemploymen t
- number of adults of working age who are out of work but seeking work. unemployed / total labour force x 100
- govts want scarce resources to be used effiiently so all benefit from rising s.o.l
- the employment rate is the number of people employed, as a % of the total labour force, participation rate.
- fair redistrubution of income
- sustainable economic development
- development happens when human well being improves, e.g reduced poverty, more equal distribution of Y.
- sustainable economic development
- main measures:
- claimant count, people recieving Universal Credit
- the labour force survey- those without a job, currently seeking one. internationally comparable
- Full employmment / low, unemploymen t
- number of adults of working age who are out of work but seeking work. unemployed / total labour force x 100
- govts want scarce resources to be used effiiently so all benefit from rising s.o.l
- the employment rate is the number of people employed, as a % of the total labour force, participation rate.
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