Macroeconomic Aims
Why does economic growths matter?
It saves the both the government and society's money. It helps provide better living standards such as better schools and better hospitals. (Answers may verify)
If you were the government how would you get your budget for the fiscal policy?
borrowing, leaving extra money, and balancing the taxes and the spendings
Will you still borrow money if the central bank raises interest?
NO！！
True/False: The price lowers when inflation happens
False
If u could add one extra aim in the macroeconomic aims what would it be?
Answers may vary
People working+People looking for work=?
labour force
Why do governments spend?
Boost Demand, Fix the Market, Help the Vulnerable, Pay interest
Why does it matter?
Changes household spendings, business investments and exchange rates
What should u do if there was a inflation happening?
spend smart, save wisely, adapt fast
What is a tariff?
taxes on imported goods
Imagine if you were the government, when is inflation helpful?
When it is a slow and steady one.
How would you tax if you were the government?
(The answer should be related to: Raising Revenue, Sharing Wealth, Discouraging Bad Goods,Protecting Local Goods, and Controlling Demand)
What is one way for the government to reduce cash in the market?
Open Market Operations/ Interest Rates
Deflation means?
Inflation slows
Cat buys fish before inflation, cat sells fish after, is cat gaining or losing?
In money terms yes, in "real“ terms maybe qwq
If you were a rich guy, how would the government reduce the gap between you and your poor neighbor with a economic related solution?
By taxing you
Types of Taxes?
Direct, Indirect, Progressive, Porportianal, Regressive
Reserve Requirments?
How much cash the bank had to keep
Effects of inflations
Lowering purchase powers, higher tax brackets, hurt exports, reduces dept, encourages investments, adjusts wages.
Lower demands
What are the five macroeconomic aims?
Why do governments establish the fiscal policy?
To reach the macroeconomic aims
Lowering interest=?
How can we do to stop inflation?
For example: Communicating effectually
Try using "Macroeconomic aims" "Fiscal Policy" "Monetary Policy" "Inflation/Deflation" in a sentence
Answers must make sense