Macroeconomic Aims

Government and the Macroeconomy · 4 question types

Exam Frequency Analysis

Past paper frequency (2018 to 2024)

This topic accounts for approximately 13% of your exam marks.

stable

High

Stable13%

Listing and defining macroeconomic aims, plus conflicts between them, appear on virtually every paper; usually 4 to 8 marks.

Aim	What it means	Headline target
Economic growth	Sustained rise in real GDP	~2–3% per year
Low inflation	Low and stable rise in prices	Often ~2% CPI
Low unemployment	High employment rate	Only frictional unemployment remains
BoP equilibrium	Current account roughly balanced	Exports ≈ Imports over the medium term
Income redistribution	Reduced inequality, less poverty	No single number; judged from income-distribution and poverty data.
Environmental sustainability	Growth without lasting environmental damage	Lower pollution and emissions; sustainable use of resources