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O Levels Economics (2281)•2281/11/M/J/25
Question 17 from 2281/11/M/J/25

Explanation

Government macroeconomic goals focus on economy-wide stability and growth

Steps:

  • Recall that macroeconomics deals with national-level issues like employment, inflation, and growth, not micro-level details.
  • Identify common government aims: full employment, price stability, economic growth, and balanced trade.
  • Evaluate choices against these aims: look for options promoting broad economic health.
  • Select the option aligning with full employment as a key macroeconomic target.

Why C is correct:

  • Low unemployment is a core macroeconomic aim, defined as achieving full employment to maximize workforce participation and economic output.

Why the others are wrong:

  • A: High sales tax is a fiscal tool, not an aim; it generates revenue but can hinder growth.
  • B: High tax costs burden businesses and consumers, opposing aims like economic expansion.
  • D: Low wages reduce consumer spending power, conflicting with goals of equitable growth and stability.

Final answer: C

Topic: The macroeconomic aims of government

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