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Theme 2: The UK Economy - Performance and Policies
2.6: Macroeconomic Objectives and Policies
2.6.1: Possible Macroeconomic Objectives
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Kendrick Lamar
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Cards (3)
Macroeconomic Objectives
Stable economic growth
Unemployment rate
of
3%
Inflation rate
of
2%
Balance
of
payment equilibrium
Other macroeconomic objectives
Balanced government budget
Protection
of the
environment
Greater income equality
Governments manage demand through
monetary
and
fiscal policies.
They try to
increase AD
in periods of
recession
and try to
decrease
it in
booms
