c) current account imbalances and other macro objectives

• What are the four main objectives of governments?

  Low unemployment, low inflation, economic growth, balance of payments
• Why is achieving balance of payment equilibrium challenging?

  It can be affected by achieving other aims
• How do the objectives of low unemployment and balance of payments relate?

  Low unemployment can impact balance of payments
• What does low and stable inflation aim to achieve?

  Price stability in the economy
• If a government prioritizes economic growth, what might be a potential consequence for balance of payments?

  It may lead to trade deficits
• What is meant by current account balance in the context of balance of payments?

  It reflects trade in goods and services
• How might economic growth at a similar rate to other economies influence a government's objectives?

  It can help maintain competitiveness
• What could be a government’s strategy to achieve low unemployment while maintaining balance of payments?

  Invest in job creation and export industries