Briefly explain the main macroeconomic objectives of governments.

Definition of macroeconomic issues

• Growth

a)      Enhance in national income per unit of time, a flow method

b)      Enables the economy to improve living standards

• High employment

a)      Percentage of labour force employed

b)      shows utilisation of social factor of production

• Price stability

a)      steady rate of price enhance; change in CPI/RPI/GDP deflator

b)      Permits predictability and reliability in the economic environment

• External balance

a)      balance of payments

i) equilibrium in foreign sector trade, i.e. exports and imports

b)      exchange rate

i) stability in external value of currency