Social Science 5: Economics Module 1.2

Study Notes

Countries establish macroeconomic goals to provide direction and evaluate economic health.
Common economic goals include sustainable economic growth, full employment, and stable prices.

Refers to the increased productive capacity of an economy, enabling it to meet the needs of its populace.
Measured by shifts in the Production Possibilities Frontier (PPF) indicating growth in output.
Influenced by resource quantity increases and technology advancements.
The Philippines recorded a 5.9% growth in the previous year but faced declines of 0.7% and 16.5% in early 2020 due to COVID-19 impacts on major sectors.
Government optimism for a projected 6% growth in 2021 reflects resilience despite challenges.

Implies optimal use of resources, aspiring for no unemployment despite inherent economic imperfections.
The Philippine government allocates significant funds for projects like "Build, Build, Build" to stimulate job creation.
Maria Lourdes D. Lim indicated the project could create an average of 1.1 million jobs annually, primarily in construction.
COVID-19 pandemic led to an unprecedented unemployment rate of 17.7% with 7.3 million jobless in April 2020, complicating recovery efforts.

Essential for economic efficiency, with low and stable inflation rates allowing proper market function.
High inflation diminishes purchasing power, while deflation indicates limited market activity.
In July 2020, the inflation rate in the Philippines was reported at 2.7%, driven by increased transportation costs.

Economic goals serve as benchmarks for evaluating governmental policies and economic performance.
Citizens can engage in discussions about these goals, and education in science and technology can contribute to national improvement.