What are the aims of macroeconomic policies

      

What are the aims of macroeconomic policies

  

Answers


Dana
1. Full employment: unemployment is where some resources are not optimally utilized and are lying idle. Full employment is favored because the greater the level of employment, the greater the amount of goods and services available in the economy. It is also argued that the burden of unemployment and loss of goods and services fall disproportionately on people who are without jobs.

2. Price stability: inflation should be avoided at all times so that prices remain stable and predictable overtime. This is important because inflation affects other people more adversely more than others.

3. Economic growth: economic growth takes place when real output increases more rapidly than the increase in population thus with economic growth the society has more goods and services at its disposal and correspondingly higher standard of living

4. External balance: if a country has a favorable balance of payment, its foreign exchange reserves will increase hence it can import the much needed capital for investment. Unfavorable balance of payment would lead to an outflow of foreign exchange to finance the trade deficit.
Dana05 answered the question on July 18, 2019 at 19:39


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