2.1.1 The Objectives of Government Economic Policy
Year 1 content
Use your understanding of Government policy to analyse
the article “Brexit: Government guarantee for post-EU
funds”.
To what extent do you think this will allow the Government
to achieve macroeconomic objectives? Justify your answer.
AQA 2.1: The measurement of economic performance
2.1.1 W HAT
YOU NEED TO KNOW

The main objectives of government macroeconomic policy:
economic growth, price stability, minimising unemployment
and a stable balance of payments on current account

The possibility of conflict arising, at least in the short run,
when attempting to achieve these objectives

That governments may also have other objectives of
macroeconomic policy, such as balancing the budget and
achieving an equitable distribution of income

They should be aware that the importance attached to the
different objectives changes over time
2.1.1 Y EAR 1 R ECAP :

Can you state the governments main macroeconomic policy
objectives?
economic growth
price stability
minimising unemployment
stable balance of payments on current account
 balancing the budget
 achieving an equitable distribution of income
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

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
Remember, the importance attached to different objectives changes
over time. Why might this be the case?

How can conflict arise, at least in the short run, when attempting to
achieve these objectives?