EconomicsCode 2281
Macroeconomic aims
What this topic asks you to be able to do
- the aims a government pursues for the macroeconomy: economic growth; stable prices or low inflation; full employment or low unemployment; balance of payments stability; environmental sustainability; redistribution of income
- the justifications for which aims a government picks, along with the criteria a government may set to measure success in reaching each aim
- possible tensions where one macroeconomic aim undermines another: full employment with stable prices; economic growth with environmental sustainability; full employment with balance of payments stability