Defined And Explain The Four Macro-economic Objectives And Evaluate The Effects Of Their Attainment And Non Attainment On The Economy?


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The four major objectives of Macro-economics are:-

Price Stability:- A moderate level of inflation that is sustained over a long period of time is one of the major objectives of macroeconomic policies. An explosion in Inflation leads to increased commodity prices and makes cost of living more expensive. A deflation results in recession and the consequences lead to reduced production efficiency and greater unemployment.

Full Employment: To have all able bodied and capable individuals functioning as earning members in a society. Greater unemployment leads to unrest, anarchy and ultimately destabilization.

Sustainability: A state's national economic growth is said to be on road to a prosperous future as a progressed nation is believed to be possible only if it can be managed and maintained substantially over a period of 25 consecutive years.

Productivity and improvement in Human Development Index:
Macroeconomic policies are aimed at enhancing productivity so as to ensure that all businesses continue to perform effectually and industrial units are optimally functioning. If on the positive side of the curve its an important indicator and would result in a better standard of living for people, increased national income, timely payments of debts and greater employment ratio.

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