Chapter 16: The objectives and instruments of macroeconomic policy

What is a policy objective ?

What is a policy instrument ?

What is a supply-side policy?

What is monetary policy ?

What is fiscal policy ?

When was monetary policy implemented and who by?

Who sets the policy objective for the Bank Of England to try and achieve?

What is the main depatment for supply-side policies

Who implements fiscal policy

What are the 5 main policy objectives in Keynesian order (with their targets)

Before the free-market counter revolution, Keynesian economists believed that economic policy should be used to achieve........

Which two policy objectives did Keynesian economists believe to be intermediate ?

In the early 1980s, what threatened to escalate out of control ?

In the early 1980s, which policy became priority for free-market economists?

In the early 1980s, which policy was downgraded to a much lower economic priority ?

What type of era did the early 1980s become?

In the early 1980s, macroeconomic policy revolved around...

Since the mid-1980s, what era died?

In 1993, what did Norman Lamont state about high unemployment ?

In 1998, under a Labour government, the governor of the Bank Of England argued that 'job losses in the north' were what?

What do Free-market economists argue for in order to maintain a high and sustainable level of employment ?

What is a policy conflict ?

What is a trade-off between policy objectives ?

In the UK Keynesian era, what were the 4 main conflicts between policy objectives?

Why do some free-market economists believe that achieving an equal distribution of income & wealth can make an economy less competitive and grow slower?

What is the ultimate objective of economic activity ?

What are the penultimate objectives

What are the intermediate objectives?

What are the 3 main policy instruments

What are the 3 main instruments of Macro fiscal policy and Micro fiscal policy?

State one way supply-side policy is used to achieve competitive and efficient markets?

State the 2 main ways Monetary policy is used to achieve the money supply target and exchange rate target

What is Beveridge's definition of full employment ?

In the 1950s and 1960s, where was UK unemployment in relation to Beveridge's target?

According to Beveridge, full employment was achieved during which decades ?

What happened to unemployment in the two recessions in early 1980s and early 1990s?

In 1986 and 1993, what figure did unemployment peak to?

In the 1990s and 2000s, what happened to unemployment and why?

In 2005, what happened to unemployment? Did it meet Beveridge's definition?

In 2007, unemployment was at what figure? (percentage)

Due to the recession in 2008, what happened to unemployment?

In 2011, unemployment peaked at what level (million) and what was the unemployment rate?

What is the free-market definition of full employment?

Define economic growth

What does the government aim to achieve in terms of economic growth (2)

What does economic growth usually create more of?

What do free-market economists argue for to create the supply-side conditions in which growth is best fostered?

Since Q1 of 2013, what has happened to GDP?

What happened to the rate of GDP growth between Q3 of 2013 and Q1 of 2014

What was economic growth in Q3 of 2013?

What was economic growth in Q4 of 2013?

What was economic growth in Q1, Q2 and Q3 of 2014

State the 7 main benefits of economic growth

State 4 disadvantages of economic growth

What type of judgements are made when equitable considerations are introduced into economic analysis ?

There is usually a policy conflict between distribution of income and ...

For sustained economic growth to be achieved, free-economists argue that people must be

Define inflation

What type of objective is controlling inflation? Why?

As a benefit, a steady but low inflation rate may be associated with what ?

Define a 'satisfactory' balance of payments

What is a negative of a large current account surplus?

Define budget deficit

State two possible ways a government might borrow money for a budget deficit

Define the balance of payments

The BOP figures tell us what 2 things?

What is the current account of the balance of payments

What is a current account deficit ?

What is current account equilibrium ?

In the Mid 1970s, two massive balance of payments crises were caused by what ?

To try and reduce the deficits, the government did what ?

In recent years, what has happened to the current account deficit ?

Why is a large payments deficit no longer regarded as a problem ?

30-40 years ago, the government were forced to do what to support the exchange rate ?

In 2006, the trade-deficit had risen to what amount ? (and % of GDP)

What is a policy indicator ?

Define the money supply

In the monetarist era (1970s and 1980s) the money supply was used as what 2 things?

Under monetarist theory, governments attempted to control the rate of growth of the money supply in order to control what?

Was the money supply or inflation in the monetarist a policy instrument ?

To control the rate growth of the money supply, what was used ?

Which one is the intermediate objective, the growth of the money supply or interest rates.

After the 'death of Monetarism', what 2 things was the money supply no longer?

What is the money supply currently used as ?

What does the money supply indicate ?

Changes in the money supply provide the government and the Bank of England with information about what ?