CIMA BA1 Syllabus A. Macroeconomic And Institutional Context Of Business - Objectives Of Government Economic Policy - Notes ^{7 / 17}

Governments have a number of economic objectives:

1. Economic growth

   This means an increase in National Income

2. Low unemployment

   The unemployment rate is normally defined as the percentage of the population (of working age) and who are actively seeking work (ie not full-time students, unpaid home makers, pensioners etc) who are unemployed.

3. Balance of trade stability (to achieve a balance between exports and imports)

   If imports are higher than exports, this may cause financing problems.

4. Low inflation

   Inflation = A price increase