Of the four macroeconomic government objectives (low unemployment, low and steady demand-pull inflation, economic growth, and balance of payments in equilibrium), which do you think is the single most important?

Economic growth is the most important macro-economic objective of the government. Important to note, it refers to an increase in economic output over time. Basically, it incorporates other economic objectives meaning that economic growth accrues numerous advantages to the economy of a country such as lowering the levels of unemployment. The reason for the argument is the idea that economic growth entails increased productivity, which requires more labor input from workers.

Consequently, the working population earn wages hence enabling them to improve their living standards. The purchasing power of the workers helps them to maintain steady demand-pull inflation, which promotes production from different sectors of the economy. Besides, economic growth plays a significant role in promoting a positive balance of payment. Ideally, improved productivity improves the ability of a country to exports as opposed to importation leading to trade surplus. The government also benefits from economic growth because of increased tax revenue, further enabling it to finance its projects.