Macro objectives
Goals government seeks for the whole economy.
Macroeconomic objectives
Key definitions
Growth objective
Sustainable rise in real GDP (~2% UK trend).
Low unemployment
High employment / NAIRU.
Low inflation
2% CPI target.
BoP equilibrium
Sustainable current account.
Fiscal balance
Manage deficit/debt sustainably.
Environmental objective
Sustainability and emissions targets.
Equity objective
Reduce income inequality.
Lorenz curve
Shows income distribution inequality.
Policy trade-offs
Objectives may conflict — e.g. Phillips curve.
Key concepts
Seven Edexcel objectives include environment and inequality.
UK fiscal balance and carbon targets are evaluative examples.
Relevant tips
- Diagram backlog: Lorenz curve; Phillips curve for conflicts.
- Use UK Economy page for current data.
Examples & case studies
- Phillips curve links inflation and unemployment objectives.