What you'll learn
What governments aim to achieve for the economy.
Key ideas
- Objectives: growth, low unemployment, low inflation and a stable balance of payments.
- Equity (fair income distribution) and sustainability.
- Objectives can conflict (e.g. growth vs inflation).
Exam tips
- Explain trade-offs between objectives.
- Use examples to support points.
Common mistakes
- Ignoring conflicts between objectives.
- Confusing inflation with unemployment.