The macroeconomic aims of government

A government cuts interest rates to make households borrow and spend more in order to raise economic growth. Why might this create a conflict with other government aims?

Feb/March 2019

In earlier periods, governments have introduced policies intended to bring a recession in their country to an end and raise economic growth. Which mix of policies is most likely to do this?

Feb/March 2020

Historically, governments have introduced policies in an effort to bring a recession in their country to an end and raise economic growth. Which combination of policies is most likely to do this?

Feb/March 2023

A government raises spending on infrastructure in order to stimulate the economy. Which other economic aim of government could this create a conflict with?

May/June 2015

The table presents data on three economic indicators for four countries. country W: inflation $1.4\%$, interest rates $3.4\%$, unemployment $10.2\%$ country X: inflation $3.7\%$, interest rates $8.7\%$, unemployment $12.3\%$ country Y: inflation $3.6\%$, interest rates $7.3\%$, unemployment $14.2\%$ country Z: inflation $2.1\%$, interest rates $6.0\%$, unemployment $7.7\%$ What conclusion may be drawn from this information?

May/June 2016

When a government seeks to meet one of its aims, it may hinder the achievement of another aim. What is one example of such a conflict?

May/June 2017

When a government attempts to meet one of its aims, it may make it harder to meet another aim. What is one example of this conflict?

May/June 2017

While a government is attempting to meet one of its aims, it may make it harder to meet a different aim. What is one example of this conflict?

May/June 2017

What is one objective of government policy?

May/June 2018

What is one aim of government policy?

May/June 2018

What does government policy aim to achieve?

May/June 2018

Back in 2016, there were worries that the Singaporean economy might tip into recession because demand from China, its largest export destination, was weakening. A likely effect of a recession is a drop in consumer spending. In an earlier recession in 2008, unemployment had climbed from 1.6% to 3.4%. Singapore’s central bank therefore chose to step into the foreign exchange market to affect the currency’s value.

May/June 2018

The table presents several economic indicators. Which rise in the first indicator is most likely to cause a rise in the second indicator?

May/June 2022

The table presents several economic measures. Which rise in the first measure is most likely to cause a rise in the second measure?

May/June 2022

Which of the following is not normally regarded as a macroeconomic aim?

May/June 2022

Why could the macroeconomic objective of full employment clash with the objective of stable prices?

May/June 2022

The table presents some economic indicators. Which rise in the first indicator is most likely to cause a rise in the second indicator?

May/June 2022

Name one example of a government macroeconomic aim?

May/June 2023

Give one example of a macroeconomic indicator.

May/June 2023

Which macroeconomic objective, if it is met, is most likely to raise a government budget surplus?

May/June 2024

Why could steps taken to reduce unemployment also cause inflation to increase?

May/June 2024

What is one macroeconomic objective of a government?

May/June 2025

A number of central banks across the world cut interest rates during a recession caused by a pandemic. What macroeconomic objective was this policy most likely intended to achieve?

May/June 2025

What is the most likely reason for a government to seek price stability?

May/June 2025

In 2023, India became the most populous country. This could influence the government’s macroeconomic objectives. In 2018, the Indian Government reduced the corporation (corporate income) tax rate from 35% to 25%. From 2019 to 2022, India’s inflation rate averaged 6%. Some economists argued that, if the government wanted to meet its central inflation target, it ought to reduce its spending.

May/June 2025

In 2023, the Chinese Government stated that it wanted economic growth of 5% and a gradual rise in both exports and imports. It was anticipated that stronger output would come mainly from higher household spending, although this might also create inflation. A further objective of the Chinese Government was to hold unemployment at about 5.5%. China has an ageing population and an ageing labour force.

May/June 2025

Which statement correctly describes what is meant by government economic aims?

Oct/Nov 2015

Which statement correctly describes the meaning of government economic aims?

Oct/Nov 2015

A government chose to raise its expenditure on constructing schools and hospitals. Which aim of government policy is this increase most likely to help achieve?

Oct/Nov 2015

Which statement correctly describes the meaning of government economic aims?

Oct/Nov 2015

A government chose to raise its expenditure on constructing schools and hospitals. Which objective of government policy is this increase most likely to help achieve?

Oct/Nov 2015

A finance minister stated that the economy was going through inflation and economic growth. What would count as evidence that each of these had taken place?

Oct/Nov 2017

In 2015, the UK economy saw output rise and unemployment remain fairly low. Even so, labour productivity and earnings increased only slightly. The government was still spending more than it took in tax revenue, and it was thinking about altering some monetary policy measures.

Oct/Nov 2017

In which case is the government’s success in achieving the first aim likely to create problems when trying to achieve the second?

Oct/Nov 2018

In which case is the government’s success in meeting the first aim likely to create difficulties in meeting the second?

Oct/Nov 2018

In which situation would the government’s success in meeting the first aim probably create difficulties in achieving the second?

Oct/Nov 2018

What are two objectives that a government typically seeks when it manages the performance of the whole economy?

Oct/Nov 2020

What are two objectives that a government typically seeks when overseeing the performance of the entire economy?

Oct/Nov 2020

The table gives the unemployment rate and real GDP growth rate for an economy in 2014 and 2018. Which combination of policy measures would be the most effective in restoring the economy to the 2014 level of economic activity?

Oct/Nov 2020

Can you give one example of a macroeconomic aim?

Oct/Nov 2020

What are two objectives that a government usually seeks when overseeing the performance of the whole economy?

Oct/Nov 2020

What does the term macroeconomic aim of a government mean?

Oct/Nov 2021

What does the term macroeconomic aim of government mean?

Oct/Nov 2024

Roughly 95% of students in Macao, a special administrative region of China, go to a private school. Around the world, private schools face strong competition for students. They often use technologically advanced teaching methods. Even so, some argue that private schools make the government’s aim of redistributing income harder to achieve.

Oct/Nov 2024

Which two macroeconomic aims does the government have?

Oct/Nov 2025

A government has announced that, over the next year, it has four main aims. Which two of these are macroeconomic aims for the government?

Oct/Nov 2025

A central bank or a government has several policy options that can be used to cut unemployment. One measure a government could choose is to raise spending on house construction. The Federal Reserve, the central bank of the US, has two main aims: keeping prices stable and achieving full employment. Some central banks also set economic growth as an objective, but no central bank uses HDI value as a target.

Oct/Nov 2025