Understand the main macroeconomic goals of governments, which include promoting economic growth, achieving full employment or low unemployment, maintaining stable prices or low inflation, ensuring balance of payments stability, and redistributing income. Discuss the reasons for selecting these goals and the criteria that governments use to evaluate each one.

Quick explanation

Understand the main macroeconomic goals of governments, which include promoting economic growth, achieving full employment or low unemployment, maintaining stable prices or low inflation, ensuring balance of payments stability, and redistributing income. Discuss the reasons for selecting these goals and the criteria that governments use to evaluate each one

• This point belongs to The macroeconomic aims of government, especially The macroeconomic aims of government outcomes.
• You need to be able to understand the main macroeconomic goals of governments, which include promoting economic growth, achieving full employment or low unemployment, maintaining stable prices or low inflation, ensuring balance of payments stability, and redistributing income. Discuss the reasons for selecting these goals and the criteria that governments use to evaluate each one.
• The key ideas to know are Describe, Explain, and Identify.
• Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.