Economics AQA Matt Bennett 2.1.1: Government Economic Policy Objectives

Macroeconomics studies the behaviour of an economy as a ______

Macroeconomics looks at the effects of policies such as change in ______ or higher/lower interest rates

Macroeconomics studies inflation, growth, progress in human development, trade, and ______

One of the main macroeconomic objectives is Economic Growth - improving living standards and levels of economic ______

Unemployment - maintaining full employment or low ______

Inflation - limiting or controlling inflation to achieve price ______

Short-run growth results from using ______ resources

Long-run growth increases an economy’s potential level of real ______

GDP can be split into Real and ______ GDP

Government targets full employment or low ______

Full employment can be defined when unemployment is below ______%

Unemployment is measured using Claimant count and Labour force ______

_______ is a persistent or continuing rise in the average price level

_______ is the official measure (from 2011 onwards) to calculate UK rate of inflation

RPI is the former measure of inflation, generally higher than _______

Inflation is measured in 2 main ways - the Consumer Price Index (CPI) and the Retail Price Index (_______)

If value of imports > value of exports, then there is a trade _______

The UK government targets a “satisfactory” balance of _______