16. Which are two aims that a Government normally pursues when managing the performance of the whole economy?1 pointA to encourage an increase in production and to prevent high inflationB to ensure no one is unemployed and to reduce exportsC to give everyone equal incomes and to increase government revenuesD to protect the environment and to reduce interest rates
Question
- Which are two aims that a Government normally pursues when managing the performance of the whole economy?1 pointA to encourage an increase in production and to prevent high inflationB to ensure no one is unemployed and to reduce exportsC to give everyone equal incomes and to increase government revenuesD to protect the environment and to reduce interest rates
Solution
The two aims that a government normally pursues when managing the performance of the whole economy are:
A) To encourage an increase in production and to prevent high inflation.
This is because increasing production can lead to economic growth and job creation, while preventing high inflation is important for maintaining the purchasing power of the currency and stabilizing the economy. High inflation can erode the value of money and create uncertainty in the economy.
The other options are not typically primary aims of economic management. While governments do aim to reduce unemployment, they do not typically aim to reduce exports - in fact, many governments aim to increase exports as a way to stimulate economic growth. Similarly, while income equality and increasing government revenues are important, they are not typically the primary aims of managing the economy. Finally, while environmental protection is increasingly recognized as important, it is not typically a primary aim of economic management, and reducing interest rates is a tool used to manage the economy, not an aim in itself.
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