Macroeconomic trade-offs
What Macroeconomic trade-offs means in Economics A-Level, as defined for AQA.
Definitions of Macroeconomic trade-offs
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Reference: AQA
Weighing the benefits of higher living standards against costs, including the risks of growth fuelled by unsustainable private or public debt.
Accepting that shifting focus between objectives means sacrificing one goal, such as low unemployment, to control spiralling inflation.
Conflicts between secondary objectives and primary goals, requiring careful policy trade-offs.
Topics that use Macroeconomic trade-offs
- Economic growth and the economic cycle (AQA A-Level)
- The objectives of government economic policy (AQA A-Level)
Related terms
- Aggregate demand
- Aggregate supply
- Asset price bubbles
- Economic fluctuations
- Externalities
- Inequality
- Inflationary pressure
- Inflationary pressures
Using Macroeconomic trade-offs in the exam
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