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Macro objectives
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Cards (10)
Macroeconomics
Studying the
performance
of
an
economy
Core macroeconomic indicators
Economic growth
Unemployment
Inflation
Trade
Distribution
of
income
Economic
growth
Indicator
of
incomes
and
living standards
in the economy
Objective is for
growth
to
be
strong,
sustained
and
sustainable
Unemployment
Indicator of people in the economy that
don't
have
jobs
Objective is for
unemployment
to
be
low
(
full
employment)
Inflation
Indicator
of the
rate
of
growth
of
prices
in an economy
Objective is for inflation to be
low
and
stable
(e.g.
2
%
target
in
UK
)
Trade
Indicator of the value of
imports
of goods and services compared to the value of exports
Objective is for
balanced trade
(neither trade deficits nor trade surpluses)
Distribution of income
Indicator of how
incomes
are distributed across
households
Objective is for a
fair
distribution of
income
(but no precise target)
Macroeconomic objectives are set by
governments
and economists to achieve
macroeconomic stability
Other important macroeconomic objectives
Sound
government
finances
Environmental
sustainability
Productivity
growth
The
circular flow
of income is a way of
modelling
the economy
