Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a primary macroeconomic policy objective?

1. Advertising and marketing

2. Social welfare

3. Economic growth

4. Public relations

The correct answer is: Economic growth

A primary macroeconomic policy objective focuses on the long-term stability and growth of a country's economy. Economic growth is crucial as it indicates an increase in the production of goods and services, leading to higher income levels, more jobs, and improved living standards for the population. This growth is often measured by the increase in Gross Domestic Product (GDP). When policymakers prioritize economic growth, they typically implement measures such as investment in infrastructure, education, and technology, all of which can have a multiplier effect on the economy. Moreover, by fostering an environment conducive to business, innovation, and trade, economic policies can stimulate investment, enhance productivity, and create sustainable development pathways. In contrast, the other options listed do not directly align with core macroeconomic objectives. Advertising and marketing focus on promoting products or services at a microeconomic level, social welfare, while important, primarily pertains to improving living conditions and can sometimes be a consequence of economic growth, and public relations deals with managing perceptions of organizations or industries rather than broad economic policies. Therefore, economic growth stands out as a fundamental goal of macroeconomic policy.