0455

Macroeconomic Aims

Government and the Macroeconomy · 4 question types

AimWhat it meansHeadline target
Economic growthSustained rise in real GDP~2–3% per year
Low inflationLow and stable rise in pricesOften ~2% CPI
Low unemploymentHigh employment rateOnly frictional unemployment remains
BoP equilibriumCurrent account roughly balancedExports ≈ Imports over the medium term
Income redistributionReduced inequality, less povertyNo single number; judged from income-distribution and poverty data.
Environmental sustainabilityGrowth without lasting environmental damageLower pollution and emissions; sustainable use of resources