Macroeconomic objectives
What Macroeconomic objectives means in Economics A-Level, as defined for AQA.
Definitions of Macroeconomic objectives
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Reference: AQA
The goals the MPC tries to influence through changes in the base rate, primarily the government's symmetric inflation target of 2.0% (CPI), along with growth and employment.
The goals that government stimulus of aggregate demand may pursue, such as reducing unemployment below the natural rate, which in the long run only cause inflation.
The wider economic goals, including the government's target rate of inflation, that the Monetary Policy Committee tries to meet when setting the official bank rate.
Supply-side policies can affect unemployment, the rate of change of prices and UK external performance as reflected in the balance of payments on current account.
The goals for the economy that budget deficits and surpluses affect, including economic growth, unemployment, inflation and price stability.
Key indicators of economic performance, including inflation, unemployment and the current account, which changes in net exports can impact.
Topics that use Macroeconomic objectives
- Central banks and monetary policy (AQA A-Level)
- Fiscal policy (AQA A-Level)
- Possible conflicts between macroeconomic policy objectives (AQA A-Level)
- Supply-side policies (AQA A-Level)
- The determinants of aggregate demand (AQA A-Level)
Related terms
- Aggregate demand
- Exchange rates
- Interest rates
- Long-run aggregate supply
- Natural rate of unemployment
- Policy conflicts
- Supply-side policies
- Aggregate demand and supply
Using Macroeconomic objectives in the exam
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