Sum of all microeconomics in country/ across several

country Focus on the aggregate

Studies the behavior and changes in the economy
performance of an such as unemployment-
economy as a whole. (How MACROECONOMIC OBJECTIVES growth rate-GDP and
https://www.youtube.com/watch?v=OPV1BOs1ISI&list=PLWeicFreBUYDlaLppnRTZpwgBASflf4lU&index=1
well the economy is doing?) inflation.

Indicators (I) [will tell you] Objective

Growth – I of income (Y) & standard of living (SOL)
Too rapid a growth is undesirable as it is unsustainable as
economy doesn’t have FOPs & cause inflation [general
increase in the price level of G&S]
Unemployment – I of those with no jobs
Inflation – I for rate of growth in prices
High inflation, people loose confidence on the value of
currency/economy. £1 LY could buy 2apples £1 TY can only buy 1 apple
Trade – I of the value of imports (M) of G&S compared
to value of exports (E) of G&S
Re-Distribution of Income – I of how income is
distributed across the household
REMEMBER “TIGER-S” S stands for achieving stability when T,I,G,E is met at the same time
Non-Core Objectives:
֍ Sound Gov. Finances – Ensure the economy can pay
֍ Environmental Sustainability
֍ Productivity Growth – Labour productivity i.e. output per worker per hour is rising
Strong [high income/high SOL], Sustained [to be continuous
over time (OT)], Sustainable [the way we are growing today to
be continued OT i.e. growth without excessive inflation, growth
without excessive environmental damage]
Low Unemployment, Full Employment [clear sign of
strongly performing economy]
Low and Stable [high inflation can ruin economy and deflation
can equally tear the economy], 2% (+/- 1%) in UK [desired
level]. Target inflation set by Central Bank independent of
government
Balanced [between value of E and M, trade deficits = M>E &
trade surplus = X>M, both has –ve impact but deficit has more]
“Fair” [no economy has an exact figure as an I; will be an
opinion-normative consideration depending on the ruling
government]