Theme 2 - Macroeconomic objectives 3.0 / 5 based on 1 rating ? EconomicsMacroeconomic indicatorsASEdexcel Created by: becky.65Created on: 21-05-17 13:59 What is the macroeconomic policy? It aims to control the level of activity in economy so that the standard of living improves and stability is maintained 1 of 6 What are the four main economic objectivies? Sustainable economic growth, low levels of unemployment, low and steady rate of inflation and positive balance of payments 2 of 6 Why does the government want sustainable economic growth? If the economy grows too fast, inflation may accelerate because demand exceeds supply; economic growth also results in higher living standards 3 of 6 Why does the government want low unemployment? To maximise incomes and output which is desireable for social and political reasons 4 of 6 Why does the government want low and stable inflation? Inflation makes the economy unpredictable and making planning and investment more difficult 5 of 6 Why does the government want an equilibrium on their current account of balance of payments? Because otherwise the government will need to borrow if their imports exceed exports 6 of 6
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