Government and the Macroeconomy · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 13% of your exam marks.
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 | Unemployment near the natural rate |
| BoP equilibrium | Current account roughly balanced | Exports ≈ Imports over the medium term |
| Income redistribution | Reduced inequality, less poverty | No single number; measured by Gini, poverty rate, etc. |
| Environmental sustainability | Growth without lasting environmental damage | Lower pollution and emissions; sustainable use of resources |