What Are The Objectives Of Macroeconomics?


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Nayyara - Profile
Nayyara - answered
Macroeconomic objectives
Broadly, the objective of macroeconomic policies is to maximise the level of national income, providing economic growth to raise the utility and standard of living of participants in the economy. There are also a number of secondary objectives which are held to lead to the maximisation of income over the long run. While there are variations between the objectives of different national and international entities, most follow the ones detailed below:

Sustainability - a rate of growth which allows an increase in living standards without undue structural and environmental difficulties.

Full employment - where those who are able and willing to have a job can get one, given that there will be a certain amount of frictional and structural unemployment.

Price stability - when prices remain largely stable, and there is not rapid inflation or deflation. Price stability is not necessarily the same as zero inflation, but instead steady levels of low-moderate inflation is often regarded as ideal. It is worth noting that prices of some goods and services often fall as a result of productivity improvements during periods of inflation, as inflation is only a measure of general price levels. However, inflation is a good measure of 'price stability'. Zero inflation is often undesirable in an economy. ("Internal Balance" is used to describe a level of economic activity that results in full employment with no inflation.)

External Balance - equilibrium in the Balance of payments without the use of artificial constraints. That is, exports roughly equal to imports over the long run.

Equitable distribution of income and wealth - a fair share of the national 'cake', more equitable than would be in the case of an entirely free market.

Increasing Productivity - more output per unit of labour per hour.

Also, since labour is but one of many inputs to produce goods and services, it could also be described as output per unit of factor inputs per hour.
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Anonymous Profile
Anonymous answered
(Aims of government’s economic policy)  
The main objectives are;
1. A high and stable level of employment
2. A relatively stable price level.
3. A satisfactory balance of payments position.
4. High rate of economic growth
5. A more equal distribution of income and wealth.

      Objectives of economic policy

Economic policy refers to the economic objectives (targets) and the ways in which the government tries to achieve these objectives. The broad objectives of economic policy are the following.
1. A high and stable level of employment
This is one of the outstanding objectives of economic policy. This is to create a situation where people who willing to work are able to find jobs within a reasonable period of time. This could be by increasing government spending and inducing private spending.
2. A relatively stable price level

Stable prices or low inflation is another important objective of economic policy. Inflation may has several harmful effect on the economy.
3. A satisfactory balance of payment position
It is the responsibility of the government to secure a favourable balance of payments situation . For this, the government has to see that the level of imports doesn’t exceed the country’s exports during a given period of time. A persistent deficit in the balance of payment will have to be corrected.

4. High rates of growth
When there is steady growth only, the people of a country will be able to enjoy higher real income. That is consume more and better quality goods and services. Therefore, the government should take efforts to increase the country’s output of goods and services by controlling population and price levels.    

5. More equal distribution of income and wealth
It is the responsibility of the government to reduce the gap between the rich and poor in a country. A fair tax system may help the government to tax the rich and redistribute this among the poor in the form of welfare measures.
Ali Awais Profile
Ali Awais answered
Macro Economics examines either the economy as a whole  or its basic subdivisions or aggregetes such as the government,household,and business sectors.    An aggregate is a collection of specific economic units treated as if  they were one unit.Therefore, we might lump together  the millions of consumers in the U.S. Economy  and treat them as if  they were on huge unit called consumers.    In using aggregates,macro economics seeks to obtain an over view,or general outline,of the structure of the economy and the relationships of  its major aggregates.    Macroeconomics speaks of such economic measures as total output,total employment,total income,aggregate expenditures,and the general level of prices in analysing various economic problems.  No or very little attention is given to Specific units making up the various aggregates.Macro economics examines the forest,not the trees.
Tariq Habib Profile
Tariq Habib answered
In general, economists judge macroeconomic performance by looking at a few key variables, the most important being gross domestic product, the unemployment rate, and inflation. Let's start by looking at gross domestic product, or national output.
The ultimate objective economic activity is to provide the goods and services that the population desires. What would be more important for an economy than to produce ample shelter, food, education, and recreation for its people?

The most comprehensive measure of the total output is an economy is the gross domestic product. Gross domestic product is the measure of the market value of all final goods and services, oatmeal, beer, cars, rock concerts, airplane rides, health care, and so on produced in a country during a year. There are two ways to measure gross domestic product. Nominal gross domestic product is measured in actual market prices. Real gross domestic product is calculated in constant or invariant prices.

Movement in real gross domestic product are the best widely available measure of the level and growth of output, they serve as the carefully monitored pulse of a nation's economy.

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