ACCA Applied Knowledge · Business and Technology · Macroeconomic factors
Which of the following is a typical macroeconomic objective of a government?
Achieving sustainable economic growth is a typical macroeconomic objective. Governments usually aim for growth, low unemployment, stable prices and balance of payments equilibrium. Profit, market share and pricing policy are business-level concerns rather than economy-wide objectives.
- AMaximising the profit of each state-owned company
- BAchieving sustainable economic growthCorrect
- CIncreasing the market share of domestic firms in each industry
- DEnsuring all businesses use the same pricing policy
Explanation
Standard government macroeconomic objectives include economic growth, low unemployment, stable prices (low inflation) and a balance of payments equilibrium. Company profit, market share and pricing are microeconomic or business-level matters, not core macroeconomic objectives.
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