4.2.1 Macroeconomic Aims of Government
Describe the macroeconomic aims of government policies; economic growth; full employment/low unemployment; stable prices/low inflation; balance of payments stability; redistribution of income.
Analyse the reasons behind the choice of aims and the criteria that governments set for each aim. Discuss the possible conflicts between government aim. Full employment V stable prices, Economic growth V balance of Payments stability, and full employment V balance of payments stability |
For each of the Macroeconomic aims (objectives) find an example of a news story that covers these.
Complete the following:
1. Summarise the news article.
2. Explain any economic problems that are referred to.
3. Does it suggest any actions that could be taken by government to improve the economy?
Complete the following:
1. Summarise the news article.
2. Explain any economic problems that are referred to.
3. Does it suggest any actions that could be taken by government to improve the economy?
Macroeconomic Objective 1: ECONOMIC GROWTH
- What is economic growth?
- Why is economic growth desirable?
- What happens during a recession?
Macroeconomic Objective 2: FULL EMPLOYMENT/LOW UNEMPLOYMENT
1. What causes unemployment?
2. Why is unemployment of labour an economic problem?
3. What are the wider problems of inflation?
1. What causes unemployment?
2. Why is unemployment of labour an economic problem?
3. What are the wider problems of inflation?
Macroeconomic Objective 3: LOW AND STABLE PRICE INFLATION
1. What is inflation?
2. What causes inflation?
2. What are the consequences of inflation?
1. What is inflation?
2. What causes inflation?
2. What are the consequences of inflation?
Macroeconomic Objective 4: BALANCE OF PAYMENTS STABILITY
1. What is the balance of payments?
2. What does it mean if you have a balanced current account balance?
3. Is it desirable to have a surplus or a deficit?
1. What is the balance of payments?
2. What does it mean if you have a balanced current account balance?
3. Is it desirable to have a surplus or a deficit?