What are the major objectives of macroeconomics? Write a brief definition of each of these objectives. Explain carefully why each objective is important?
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.
