Macro-economic policy objectives, Managerial Economics

Macro-economic policy objectives

The major macro-economic policy objectives which the governments strive to achieve are:

i. Full employment

One of the main objectives of all governments is the control of employment or full employment.  However economists are not agreed on what constitutes full employment. But we can say full employment exists when everyone who wants a job and is capable of doing a job is able to find one.

ii. The control of inflation

Since most monetarists believe that inflation has a negative effect upon economic growth as  it increases uncertainty and discourages savings, maintaining stable  prices usually is a major objectives of most governments.

These two foregoing objectives can be regarded as "good housekeeping".

iii. High Growth rates

For most people, economic growth remains the prime objective of policy as it allows  everyone to enjoy a better standard of living.

iv. Balance of payments equilibrium

Most governments like to have an equilibrium position in the BOP accounts as there are problems associated with both sides of disequilibrium.

v. Equitable distribution of income

Posted Date: 11/30/2012 3:00:58 AM | Location : United States







Related Discussions:- Macro-economic policy objectives, Assignment Help, Ask Question on Macro-economic policy objectives, Get Answer, Expert's Help, Macro-economic policy objectives Discussions

Write discussion on Macro-economic policy objectives
Your posts are moderated
Related Questions
Determine the concepts of demand Demand always mentions to demand at price. The term 'demand' has no meaning unless it is related to price. For example, the statement, 'the

Analyse The Method By Which a Firm Can Allocate The Given Advertising Budget Between Different Media Of Advertisement

Marginal Revenue (MR) This is the increase in Total Revenue resulting from the sale of an extra unit of output.  Thus, if TR n-1 is Total Revenue from the sale of (n-1) units

Question 1: Either ‘Today the business organizations are quite different from the traditional classical firm with a wide range of objectives.' Discuss the above statement

Discuss whether Indian Consumer goods industry is growing at the cost of future Profitability.

Consider the following table. It shows the market shares of seven clothing stores (A to G) in five dissimilar cities. a) Calculate the Herfindahl index (?H) for each city.

The city of Cabernet is very popular for its production of wine. The inhabitants of the city have an aggregate demand for wine that can be described as follows: where Q d

Define the shift in demand curve To put it differently, demand for a commodity means entire demand schedule that demonstrates the varying amounts of goods purchased at alternat

PROBLEMS OF USING PER CAPITA INCOME TO COMPARE STANDARD OF LIVING OVER TIME 1)       The composition of output may change. e.g. more defence-related goods may be produced and

State the Demand analysis Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since