Topic Two (5.2): Macroeconomic Aims of Government
In this topic you will study the following:
- The five main macroeconomic aims of government.
- Conflicts that can arise in pursuing these aims.
Reading
For this topic you will need to work through pages 126 to 129 in your course book.
Key Points
- Please pay attention to the fact that governments in all countries have similar macroeconomic aims, although the priorities may be different from one country to another.
- You will need to understand the common objectives of full employment, stable prices, economic growth, fair income distribution and international trade, and why these are priorities.
- You will also learn that when pursuing these aims, there may be times when conflicts between them arise, and trade-offs will need to be accepted.
Please study the following resources:
Links
WATCH - Macroeconomic Government Objectives (YouTube) Links to an external site.
Download
READ - Macroeconomic Policy Objectives Download READ - Macroeconomic Policy Objectives