Photo AI
State and explain FOUR economic aims of the Irish government - Leaving Cert Economics - Question (b) - 2007
Question (b)
State and explain FOUR economic aims of the Irish government. Discuss TWO examples where economic policies introduced to achieve one economic aim, may make it more ... show full transcript
Worked Solution & Example Answer:State and explain FOUR economic aims of the Irish government - Leaving Cert Economics - Question (b) - 2007
Step 1
State and explain FOUR economic aims of the Irish government.
Answer
-
Achieve Full Employment: The Irish government aims to ensure that all individuals who are willing and able to work can find employment. Full employment is crucial for maintaining economic stability and social cohesion in society.
-
Control Price Inflation: It is essential for the government to manage inflation rates to maintain the purchasing power of currency. By keeping inflation in check, the government can protect consumers' financial wellbeing.
-
Achieve Moderate Economic Growth: The government strives for sustainable economic growth, which is vital for improving living standards. This can involve policies that stimulate investment and consumption without leading to economic overheating.
-
Improve State Services: Enhancing public services such as health, education, and social welfare is a key aim. Better state services contribute to overall societal wellbeing and economic efficiency.
Step 2
Discuss TWO examples where economic policies introduced to achieve one economic aim, may make it more difficult to achieve one of the other aims.
Answer
-
Taxation Policies: If the government reduces taxation to stimulate economic growth, it might lead to lower public finances which can adversely affect the funding available for public services. This can create a conflict between achieving moderate economic growth and improving state services.
-
Control of Inflation vs. Employment: In efforts to control inflation, the government may implement policies that lead to reduced consumer spending. While this can stabilize prices, it may also lead to a slowdown in business activity, adversely affecting full employment.