question archive What are the three goals of Macro Economics and how are they measured?

What are the three goals of Macro Economics and how are they measured?

Subject:EconomicsPrice:2.88 Bought3

What are the three goals of Macro Economics and how are they measured?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The three main goals of macroeconomics are;

  1. Low unemployment. Unemployment primarily refers to a situation whereby citizens who are willing able to work are searching for jobs, and they cannot secure any at the existing wage rate. There are different types of unemployment which include seasonal unemployment, cyclical unemployment, and voluntary unemployment. Macroeconomics aims at reducing the unemployment rate as much as possible. Unemployment is measured using the unemployment rate. Where the unemployment rate is high, then this means there are is unemployment.
  2. Low inflation. Inflation is a persistent rise in prices of goods and services. Macroeconomics aims at reducing price hikes as much as possible through regulating the money supply. Inflation is measured through consumer price index. If consumer price index is big, then there is high inflatiom.
  3. Economic growth. Macroeconomics aims at economic prosperity. Among methods of measuring economic growth is the use of real per capita income where if it increases then there has been economic growth.