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09 March 2018

Describe different objectives of macroeconomics




Main macroeconomics goals / objectives are given below:

(i) Output: The ultimate objective of economic activity is to promote the goods and services that the population desires. The most comprehensive measure of the total output is an economy is the gross domestic product (GDP).

(ii) Employment: Another major macroeconomic goal is low unemployment, high employment of all the macroeconomic indicators, employment and unemployment are most directly felt by individuals.
(iii) Price stability: The third macroeconomic objective is to maintain price stability. This term means that the overall price level either unchanged or rising very slowly.

(iv) Proper implementation of fiscal and monetary policy: Through proper implementation of fiscal and monetary policy macroeconomics can achieve stable prices which is one of the main objectives of macroeconomics.

(v) To decrease the income in equality: Macroeconomic works to decrease the income equality.

(vi) To calculate GNP appropriately: GNP represents the total economic feature of a country it is one of the objectives of macroeconomic is to calculate GNP appropriately and maximize the welfare of economy by increasing the value of GNP.

(vii) Export import equilibrium: In international trade export and import equilibrium and exchange rate stability are two vital points. So, it is one of the main objectives of macroeconomics is to keep stability of exchange rate.




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