Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT a macroeconomic policy objective?

1. Low inflation

2. Increased national income through economic growth

3. High levels of savings among citizens

4. Full employment

The correct answer is: High levels of savings among citizens

The objective of high levels of savings among citizens does not fall under macroeconomic policy objectives in the same way that the other options do. Macroeconomic policy primarily focuses on broader economic indicators and goals that impact the economy as a whole. These typically include low inflation, economic growth, and full employment—conditions critical for overall economic stability and prosperity. Low inflation is an essential objective for maintaining the purchasing power of money, encouraging stable consumer spending and investment. Increased national income through economic growth is a primary goal of policymakers to improve living standards and create jobs. Full employment reflects a healthy economy where those who are willing and able to work can find employment opportunities, leading to increased income and consumption. While high levels of savings can be beneficial for an economy, especially in terms of capital formation and financial stability, it is not a direct macroeconomic policy objective. Instead, it is an outcome that can result from achieving the broader goals of low inflation, economic growth, and full employment. Therefore, it is more of a byproduct of overall economic health rather than a core focus of macroeconomic policy itself.