Macro objectives

• What is the main focus of macroeconomics?

  Studying the performance of an economy
• How can we simplify the study of an economy's performance?

  By looking at core macroeconomic indicators
• What are some core macroeconomic indicators?

  Economic growth, unemployment, inflation, trade, and income distribution
• What does economic growth indicate?

  It indicates incomes and living standards in the economy
• What does unemployment tell us about an economy?

  It tells us about the people in the economy that don't have jobs
• What does inflation measure in an economy?

  The rate of growth of prices in an economy
• What does trade refer to in macroeconomics?

  The value of imports compared to the value of exports
• Why is the distribution of income important in macroeconomics?

  It shows how incomes are distributed across households in the economy
• What is the objective of economic growth?

  To achieve strong, sustained, and sustainable growth
• What does sustainable growth mean?

  Growth that can continue over time without excessive inflation or environmental damage
• What is the desired level of unemployment in a strong economy?

  Low unemployment, ideally full employment
• What is the target inflation rate in the UK?

  2%, with a flexibility of plus or minus 1%
• What is the objective of trade in macroeconomics?

  To achieve balanced trade between exports and imports
• What are trade deficits and why are they considered bad?

  Trade deficits occur when imports exceed exports and can have negative consequences
• What is the normative consideration regarding income distribution?

  It is based on opinions and varies depending on the government in charge
• What does the acronym TIGERS stand for in macroeconomics?

  • Trade
  • Inflation
  • Growth
  • Employment
  • Redistribution of income
  • Stability
• What does macroeconomic stability entail?

  Meeting the objectives of growth, unemployment, inflation, and trade simultaneously
• What are some non-core macroeconomic objectives?

  • Sound government finances
  • Environmental sustainability
  • Productivity growth
• What is productivity growth?

  It is the increase in output per worker per hour
• What will the next video in the series cover?

  The circular flow of income and key macro conclusions
• What is the purpose of studying macroeconomic indicators?

  To assess the performance of an economy
• What is the main focus of macroeconomics?

  Studying the performance of an economy
• How can we simplify the study of an economy's performance?

  By looking at core macroeconomic indicators
• Name one core macroeconomic indicator.

  Economic growth
• What does unemployment indicate in an economy?

  The number of people without jobs
• What does inflation measure in an economy?

  The rate of growth of prices
• What does trade compare in an economy?

  The value of imports to the value of exports
• Why is the distribution of income important in macroeconomics?

  It affects how incomes are shared across households
• What is the objective of economic growth?

  To achieve strong, sustained, and sustainable growth
• What does sustainable growth mean?

  Growth that can continue over time without excessive inflation or environmental damage
• What is considered full employment in economics?

  Low unemployment with high employment levels
• What is the desired rate of inflation in the UK?

  2% with a flexibility of plus or minus 1%
• What is a trade deficit?

  When the value of imports exceeds the value of exports
• What is a trade surplus?

  When the value of exports exceeds the value of imports
• Why is balanced trade an objective?

  To avoid negative consequences from trade deficits or surpluses
• Why is the distribution of income considered a normative consideration?

  Because it varies based on opinions and government policies
• What acronym can help remember the core macroeconomic indicators?

  TIGERS
• What does the 'S' in TIGERS stand for?

  Stability
• What are the four main macroeconomic objectives?

  Growth, unemployment, inflation, and trade
• What is the goal of achieving macroeconomic stability?

  To meet the four main objectives simultaneously