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Principles of Macroeconomic Coursework - Pre-Budget Report 2003 1. What are the Government's main economic objectives? As ever, the government holds a number of ongoing, long-term objectives: high, stable and long-term levels of economic growth and employment; low and controlled levels of inflation; fiscal rules, concerning the current account and net national debt. Additionally they aim to achieve more short-term objectives, such as supporting war in Iraq. Although these objectives may remain constant from year to year and between parties, approaches to achieving these goals may vary. The Government and the Chancellor of the Exchequer may aim to achieve economic growth and employment through a number of means. Their chosen route will to a large extent depend on their economic tendencies: whether they favour Keynesian demand management or classical theory. If they follow Keynesian beliefs then growth and employment is likely to be achieved through increasing aggregate demand by controlling fiscal and monetary...

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