CAIE A-Level Economics 10.1.1 Macroeconomic Objectives

Practise identifying inflation, external balance, unemployment, growth, development, sustainability and redistribution objectives and applying them to indicators and policy…

Exam points

distinguish macro aims such as stable prices, employment and growth from micro allocation aims
use indicator tables to judge which economy best meets several macroeconomic objectives
evaluate growth or sector expansion through jobs, AD, GDP, distribution and sustainability

[Maximum number: 1]

The table gives some economic indicators for four countries.
Which country is closest to achieving the principal aims of government economic policy?

change in GDP
(\%)

rate of inflation
(\%)

unemployment
(\%)

balance of
payments
(\% of GDP)

0.47

0.8

3.4

+3.3

1.13

0.9

10.5

-0.1

1.18

1.1

6.9

-3.3

1.45

0.1

4.6

+8.5

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10.1.1—Macroeconomic objectives question 1