gcse economics - the big picture: introducton & government objectives

THE BIG PICTURE - KEY QUESTIONS

• WHAT ARE THE ECONOMIC TARGETS OF THE GOVERNMENT?

• HOW CAN WE AVOID A CRIPPLING RECESSION?

• WHY ARE SO MANY PEOPLE ON THE DOLE?

• WHAT MAKES THE ECONOMY OF RIPLEY AND THE UK BIGGER?

• WHY DO WE WANT TO AVOID HIGH INFLATION?

Government Objectives and Targets

Four main targets:

- Low unemployment – lots of people in work

- Low and steady inflation – prices and wages fairly stable

- Steady and sustainable economic growth (%change in GDP) – the economy to grow a little bit each year

- A positive balance of payments – to export more than we import

Two other possibles:

- To reduce inequality in the country – to redistribute income and wealth in order to help the poor

- To protect the environment – to avoid pollution and congestion