Government's Macroeconomic Objectives

Steps:

• Identify core aims of economic management: growth, stability, employment, and sustainable balance.
• Evaluate options against standard goals like increasing output and controlling inflation.
• Eliminate unrealistic or secondary aims, such as absolute equality or environmental focus.
• Confirm the option aligning with production growth and price stability.

Why A is correct:

• Governments pursue economic growth (increase in production, measured by GDP) and price stability (preventing high inflation, per macroeconomic policy definitions like those in Keynesian economics).

Why the others are wrong:

• B: Zero unemployment is impossible due to natural unemployment rates; aims focus on low, not zero, unemployment.
• C: Equal incomes contradict market incentives; revenue increase is a fiscal tool, not a primary aim.
• D: Environmental protection is a modern goal but not core to overall economy performance; interest rates are a tool, not an aim.

Final answer: A