Explain why governments choose low unemployment, low inflation, and sustainable economic growth as key policy objectives.

Q: Governments set targets for key macroeconomics objectives, but these are seldom met.

Explain why governments choose low unemployment, low inflation, and sustainable economic growth as key policy objectives.

 

Introduction

·      Explain the meaning of low unemployment, low inflation, and sustainable economic growth

  1. Definitions 

  2. Description

  3. Examples

Why low unemployment as a key policy objective?

·      Explain the costs relating to high unemployment

1.  Fiscal costs - Worsening of budget position due to increased spending on unemployment/welfare benefits together with reduced tax revenue since there are a smaller pool of people to pay income text.

2.  Increases social and political instability – deterrent for investors

·      High Unemployment indicates inefficiency in the economy -producing within the PPC instead of on the PPC

Why low inflation as a key policy objective?

·      Explain the costs relating to high inflation

1.  Reduced exports competitiveness, while locals switch to cheaper imports: Worsening of BOP

2.  Reduced purchasing power of consumers -> Fall in material SOL

3.  Deter Investors: higher costs, uncertain margins

Why sustainable growth as a key policy objective?

·      Higher economic growth allows for greater material SOL as increased amount of goods and services produced (alternatively: higher incomes = greater purchasing power)

·      “Sustainable” suggests growth that limits the costs associated with it.

1.  High inflation

2.  Environmental degradation

3.  Widening inequality

💡 Struggling with Market Failure or AD-AS? Fix It This June.

Join ETG’s Micro & Macro Crashcourses — Singapore’s Top H2 Economics Tuition

Reading model essays is a good start — but understanding why they work is what gets you the marks. At ETG Economics, we don’t just teach content. We break it down, simplify the tough stuff, and train you to write like a top scorer.

🚀 Master 8 Key A Level Topics in 2 Days

📅 June 2 & 4, 2025 — Choose onsite, Zoom, or on-demand
✅ Structured lessons on Microeconomics & Macroeconomics
✅ Taught by Mr Eugene Toh, one of Singapore’s top H2 Economics tutors
✅ Hardcopy materials shipped to your door
✅ Lifetime video access — pause, rewind, repeat
✅ Learn to link real-world examples and write L3-ready evaluations

💬 “I didn’t get AD-AS at all. But after this crashcourse, everything just clicked.”
💬 “I used the recorded lessons for Prelims revision — best decision ever.”

📦 This is for you if you’re aiming for content mastery before Promos or A Levels.

🔗 Register now at tuitiongenius.com/contentcc
📲 Or WhatsApp us at 8168 3986 — we’ll help you plan your best revision week yet.

🧠 JC economics tuition that actually works — only at ETG.

Essay Writing, Macroeconomic Aims, MacroeconomicsJun Wei Goh#specialpaper