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Answer :
Answer:
Some of the major objectives of macroeconomics are:
- Economic growth: more specifically, non-inflationary, sustainable economic growth, in order to raise the living standards of the people by increasing the production of goods and services.
- Low inflation: inflation is the general rise in the price level of goods and services of a economy within a period of time. High inflation has shown to be damaging to the economy, and this is why one of the most important macroeconomic goals is to keep inflation low.
- Low unemployment: unemployment is very damaging for both individuals and society. Unemployed people are likely to be unable to live by themselves. Maintaining unemployment low is one of the most important macroeconomic objectives and it often conflicts with the goal of keeping inflation low, at least in the short-term.
- Balanced Budget: macroeconomists try to advise governments to keep low levels of debt, and to not spend too much more than they earn from tax revenue, public entreprise profits, and other sources of public income.
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Final answer:
Macroeconomics is focused on full employment, price stability, and economic growth. Full employment ensures efficient use of labor resources whereas price stability gives consumer confidence in the economy. Economic growth indicates a strong economy with increasing goods and services.
Explanation:
The major objectives of macroeconomics are generally considered to be: (1) Full employment (2) Price stability, and (3) Economic growth.
- Full employment refers to an economic situation where all available labor resources are being used in the most efficient way possible. This is important because it signifies a strong, healthy economy where everyone who wants to work is able to find employment.
- Price stability refers to the economic objective of achieving low and stable inflation. In a healthy economy, the prices of goods and services do not fluctuate significantly in a short amount of time. Stability gives consumers confidence in the economy, encouraging spending and investment.
- Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. Economic growth is important because it signifies that the economy is getting stronger, more goods are being produced, and people are better off.
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