ACCA Applied Knowledge · Business and Technology · Macroeconomic factors
Which of the following is a standard objective of government macroeconomic policy?
Achieving sustainable economic growth is a standard macroeconomic objective. Governments typically aim for growth, low unemployment, stable prices and a balanced balance of payments. Maximising the profits of specific companies or fixing the exchange rate at all costs are not general macroeconomic aims.
- AMaximising the profit of the largest domestic companies
- BAchieving sustainable economic growthCorrect
- CKeeping the exchange rate fixed at all times regardless of other aims
Explanation
The usual macroeconomic objectives are economic growth, low unemployment, stable prices and a balanced external position. Raising the profits of particular firms is not a macroeconomic objective, and a permanently fixed exchange rate is a policy choice rather than a general objective.
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