Macroeconomic Aims
Why is economic growth important?
Increase wealth, jobs，etc
What is fiscal policy?
Tax、Government spending
What is monetary policy?
Control of money supply, interest rates
What are the causes of inflation?
Demand - pull, cost - push factors
How can fiscal and monetary policies work together?
Coordinate stimulus or restraint effort
Does full employment mean 0% unemployment?
No
What's contractionary fiscal policy?
Tax hikes, spending cuts
How to stimulate economy with monetary policy?
Lower rates, increase money supply
Why is deflation harmful?
Reduces spending, slows growth
What indicators assess economic health?
GDP, unemployment, inflation rates
What are the main macroeconomic aims?
Full employment, price stability, growth, BOP balance
How can fiscal policy boost the economy?
Tax cut，increase spending
What's tight monetary policy?
Raise rates, reduce money supply
How to combat inflation？
Implement tight fiscal and monetary policies
What challenges face expansionary policies during high inflation?
Risk of worsening inflation
How does international trade impact macroeconomic growth aim?
Boosts demand, exposes to shocks
How does fiscal policy affect income distribution?
welfare spending
How does quantitative easing work as a monetary policy tool?
Central bank buys assets to increase money supply
Can a surge in import prices trigger inflation?
Yes
What role does consumer confidence play in the economy?
Influences spending, economic activity
What role does productivity play in achieving economic growth?
Increases output per worker, drives growth
Which sectors benefit most from expansionary fiscal spending?
Infrastructure, public services
What impact does a change in the discount rate have on commercial banks?
Alters banks’ borrowing costs from the central bank
What long - term impacts does deflation have on businesses?
Raising tax
How do exchange rate fluctuations impact the economy?
Affect trade, inflation, competitiveness