Other macroeconomic objectives

• Balancing the budget:

  • This focuses on achieving a position in which the revenue a government receives (e.g taxation) is equal to its expenditure over a period of time. This has been important since that financial crisis of 2007-09 and the subsequent recession. This is beneficial as a balanced budget reduces the interest payments it has to make on its borrowing.
• Increasing productivity rates:

  • A productive economy will use a minimum quantity of its factors of production to produce each unit of output. This offers economical benefits such as producing a greater volume of goods and services from a given amount of factors of production - increasing the production possibility diagram to the right. Additionally, with a fall in average cost, units can be sold at lower prices; making it attractive to consumers.

  
• Equitable Distribution of Income:

  Through the use of economical policies such as taxation and benefit payments, the government wishes to control the gap between the income received from the highest and lowest-earning households.
• Equitable Distribution of Income:

  Income inequality is seen as a barrier to social mobility; this is because many talented people from disadvantaged backgrounds are unable to achieve their full potential, possibly as they are unable to take advantage of educational opportunities .Those living in poorer households are thought to suffer poorer health, making it hard for them to contribute to the economy and enjoy a good standard of living and a good lifestyle.