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Edexcel ·Economics·Cambridge IGCSE Economics

Government Macroeconomic Objectives

13 min read

The four main macroeconomic aims — growth, low unemployment, price stability and balance of payments — and conflicts between them.

The main objectives

Governments pursue four key macroeconomic objectives:

    Economic growth — a rise in real GDP (the value of output) over time.
    Low unemployment — most people who want work can find it.
    Price stability — low and stable inflation.
    Balance of payments stability — avoiding large, persistent current-account deficits.

(Some also aim for a fairer distribution of income and protection of the environment.)

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