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Price stability consists of fighting inflation and keeping products affordable.

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It's the government's role to keep prices low and prevent inflation. They do this by increasing salaries by a similar percentage to the inflation; however, this has the opposite effect. Prices will slowly keep on rising and money will lose its value.

The government's aim is to decrease people's demand which will in turn fight inflation.

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Unemployment is a scenario in which someone who is willing and able (part of the labour force) is unable to find a job.

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The government's aim is to have the lowest possible unemployment rate; therefore, they will provide job opportunities to the people. State-owned enterprises will open up more job positions. The government can also reduce the requirements for certain jobs (needing to study less years to be a doctor, no need for a teacher license, etc).

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Income redistribution is a process in which the government taxes an individual's income and re-allocates it.

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GDP - Gross Domestic Product
The total output of a country within a year.

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Balance of trade is the scenario where imports and exports of a country are equal.

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Living standards refer to the quality of housing, wealth, and goods an individual or group can afford.

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The government will heavily tax wealthy people to take a significant part of their income. On the other hand, they will not tax/barely tax the poorer people. Then, the government will redistribute the money to the poor people to lessen the difference in incomes.

The aim is to make the rich poorer, and the poor richer. This will bring both to a similar standard of living/middle class.

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One of the main aims of the government is to grow the economy and increase the country's GDP. They can do this through subsidising firms, lowering taxes, and encouraged allocative efficiency.

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If the country has more export, then they will gain money but not have as many resources & goods (deficit resources). If the country has more imports, then they will have many resources & goods but will lose money (surplus resources).

To combat this, there needs to be an equal balance between imports and exports.

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If living standards are high, then most people in the economy will be living quiet lavishly as they can afford it. If the living standards are low, then the economy will not be as well-off.

The government's goal is for everyone to be able to afford to have a high living standard. Increased economic efficiency can also improve the living standards of the economy as a whole.