Question 20
[Maximum number: 1]
What is not a likely reason for a government having the objective of economic growth?
A
to improve living standards
B
to improve business confidence
C
to increase inflationary pressures
D
to increase consumer choice
CAIE A-Level Economics 5.1.1 Macroeconomic Policy Objectives
Practise identifying price stability, low unemployment and economic growth as macroeconomic objectives and selecting fiscal or monetary responses to relevant data.
How this is tested
- distinguish stable prices, low unemployment and real growth from distributional or micro aims
- match contractionary policy to excessive inflation and expansionary policy to deflation or joblessness
- evaluate an inflation target through expectations, credibility, flexibility and possible output costs