Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which is NOT a main aim of macroeconomic policy?

1. Growth in national income

2. Financial market stability

3. Control price inflation

4. Reduce unemployment

The correct answer is: Financial market stability

Financial market stability is not typically classified as a main aim of macroeconomic policy. The primary objectives of macroeconomic policy generally revolve around promoting economic growth, controlling inflation, and reducing unemployment. Growth in national income indicates an increase in the overall economic performance of a country, which is a central focus of macroeconomic policy aimed at improving living standards and increasing productivity. Controlling price inflation is crucial to maintaining the purchasing power of the currency and ensuring that the economy does not experience detrimental levels of inflation, which can disrupt economic stability. Reducing unemployment is also a fundamental objective, as high unemployment can lead to social issues and indicate underutilization of a country’s labor force. While financial market stability is important, it is more of a concern for financial regulation and specific policies rather than a core aim of macroeconomic policy itself. Macroeconomic policy is broader and targets overall economic health rather than focusing solely on the stability of financial markets, thus distinguishing financial market stability from the primary objectives of macroeconomic policy.