What students need to learn:
Content
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Students should be able to:
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Additional Guidance Notes
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Current macroeconomic objectives
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Identify, outline and evaluate the major current macroeconomic
objectives.
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Objectives may include increased economic growth; control of
inflation; a reduction in unemployment; restoration of equilibrium in the
Balance of Payments; making the distribution of income more equal; and
protection of the environment.
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Conflicts between objectives
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Consider basic conflicts between objectives, such as inflation and unemployment;
or economic growth and sustainability.
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Possible trade offs include those between inflation and unemployment;
growth and
sustainability; inflation and equilibrium on the current account of
the Balance of
Payments.
Students should understand the short run Phillips curve, but the long
run and expectations augmentation are not required.
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