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What are some lesser-known macroeconomic objectives?
What are some lesser-known macroeconomic objectives?
Expert Solution
At a broader level, macroeconomics deals with objectives such as maximizing national income, monitoring inflation and employment, ensuring economic growth, and raising standards of living.
Some of the lesser-known macroeconomic objectives are:
- Minimizing inequality: Income inequality is a common issue in several countries and income redistribution between the rich and the poor is one of the objectives pursued by the macroeconomic policies.
- Poverty reduction: Increasing poverty is a drawback for any growing economy. Poverty can be reduced using effective macroeconomic policies.
- Competitiveness: Exports become relatively competitive due to low inflation strategies. The macroeconomic objective is to bring competition into the market and maintain a balance of exports and imports.
- Encourage investments: Investments are promoted when interest rates are maintained at a lower rate through macroeconomic policies.
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