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What are the objectives of macroeconomics and their variables?

Economics

What are the objectives of macroeconomics and their variables?

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Macroeconomics is aimed at:

  1. Driving the economy toward full employment. The economy is at full employment when the resources are utilized fully. Macroeconomics aims at achieving full employment where there will be resources that will be underutilized.
  2. Macroeconomics is aimed at bringing economic growth. Macroeconomics also ensure that there is economic growth through the formulation of policies that are aimed at bringing growth to the economy. Economic growth can be measured by the use of the gross domestic product where if the GDP increases with time the economy is said to have grown.
  3. Price stability. Macroeconomics tries to maintain the prevailing price levels. In other words, macroeconomics tries to avoid inflation in the economy. Though there may be inflation it is maintained at manageable levels.
  4. Bringing the balance of payment. When there is a balance of payment in a country, it means that the exports and imports are equal. When a country engages in trade with other countries there may be a balance of payment deficit where a country is importing more than it is exporting or the country may exporting more goods than it actually imports this situation is called balance of payment surplus.