Syllabus: AQA - GCSE Economics
Module: How the Economy Works
Lesson: 3.2.2 Government Objectives

Introduction

In AQA GCSE Economics, 3.2.2 Government Objectives is a core topic within the “How the Economy Works” strand. It introduces students to the key goals of government economic policy, giving them the tools to evaluate how economic decisions shape the lives of citizens, businesses, and wider society. It’s where macroeconomic theory meets real-world policy.

This topic is directly aligned with AQA’s specification for GCSE Economics and builds foundational economic literacy that supports both exam success and broader citizenship. Students examine why governments target specific outcomes—such as low inflation or full employment—and how policy tools are deployed to achieve these objectives.

Key Concepts

Students should be able to:

• Identify and explain the main government economic objectives: economic growth, full employment, price stability (low inflation), and a balanced balance of payments.

• Understand the potential conflicts between objectives, e.g. reducing inflation may slow growth or increase unemployment.

• Explore how success is measured using indicators like GDP, unemployment rates, inflation data (CPI), and trade balances.

• Explain the role of fiscal and monetary policy in influencing economic performance, including taxation, government spending, and interest rate changes.

• Analyse how government priorities may shift depending on economic conditions or political aims.

These outcomes are mapped to the AQA syllabus section 3.2.2 and are examined through both understanding and evaluation of macroeconomic trade-offs and policy decisions​.

Real-World Relevance

This topic opens the door to understanding economic headlines and political debate. For instance:

• The UK government’s 2020 furlough scheme tackled the employment objective during the COVID-19 crisis—prioritising jobs even as debt increased.

• Interest rate changes by the Bank of England in response to post-pandemic inflation highlight the role of monetary policy in stabilising prices.

• Disputes over public sector pay rises bring in the conflict between maintaining low inflation and supporting income equality.

Linking real data to government actions helps students grasp the tangible impact of economic policy on everyday life—from job security to the price of milk.

How It’s Assessed

Students will encounter this topic across multiple question types, including:

• Multiple choice (e.g. identifying policy tools or objectives),

• Short-answer (e.g. explaining what is meant by economic growth),

• Data response (interpreting graphs showing inflation or unemployment trends),

• Extended writing (e.g. evaluating the effectiveness of government action in meeting economic objectives).

Common command words include explain, analyse, evaluate, and calculate—students should be confident using diagrams and economic terminology to support structured arguments​.

Enterprise Skills Integration

This topic is a natural fit for real-world problem solving and decision making:

• Analysing policy trade-offs builds critical thinking.

• Debating budget priorities fosters evaluative skills.

• Applying economic models to current affairs nurtures real-world reasoning.

Tools like Enterprise Skills’ MarketScope AI can support this by simulating policy outcomes and helping students assess the impacts of economic decisions in a low-stakes, high-engagement format.

Careers Links

Understanding government objectives builds a foundation for careers in:

• Public policy and civil service,

• Data analysis and economic research,

• Finance, particularly roles that interpret or respond to fiscal and monetary policy,

• Journalism, especially economics and political reporting.

This topic supports Gatsby Benchmarks 4, 5 and 6 by linking curriculum to careers and exposing students to the language and logic of policy-making and public administration​.

Teaching Notes

Top tips:

• Use current economic news (e.g. Bank of England updates) to anchor abstract objectives in tangible events.

• Visualise trade-offs with clear diagrams (e.g. Philips curve for inflation vs unemployment).

• Frame debates: Should the government prioritise inflation or jobs? Use these to practise exam-style extended responses.

Common pitfalls:

• Students often confuse economic growth with general prosperity—clarify GDP vs standard of living.

• Watch for oversimplified thinking (e.g. “low unemployment is always good”)—prompt them to consider opportunity cost and policy side-effects.

Extension activities:

• Run a classroom “Budget Day” where students roleplay Treasury officials making spending decisions under political and economic pressure.

• Use Pitch Deck Analyser to let students “pitch” a policy plan aimed at hitting one government objective—backed by evidence and trade-off analysis.