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What are the government's three macroeconomic objectives?
What are the government's three macroeconomic objectives?
Expert Solution
The government?s three macroeconomic objectives are as follows:
1. Price stability: The government?s objective is to keep check on the price rise. The government of the country tries to keep inflation in certain limits because if the prices go beyond the limits, the consequences will unfavorable for the economy.
2. Steady economic growth: Economic growth is referred to as an increase in the production of goods and services in an economy during a time period. To maintain a sustainable and gradual economic growth is one of the government?s macroeconomic objectives.
3. Low Unemployment: One of the macroeconomic objectives of government is to ensure full employment of resources or low level of unemployment in the country.
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