Objectives of Macroeconomics

What are the objectives of Macroeconomics?

• Macroeconomics is the school of thought through which countries plan and analyze how these goals are achieved.
• In order to meet goals such as equity, economic well-being and sustainability, there are numerous goals that countries aim to achieve.

Economic Growth

• Economic growth is measured using Real GDP which accounts for inflation.

Low Unemployment Rate

• Unemployment means one of the factors of production, labor, is not being used efficiently.

Low and Stable Inflation

• Inflation rate is the increase in the price of products.
• High inflation is not wanted, but low inflation is ideal in order to avoid deflation, which is very dangerous for an economy.

Sustainable National Debt

• Government expenditure is sometimes more than government revenue.
• Debts are taken to pay for the deficit.
• Sustainable debt is debt that can be managed without posing a threat to the economy.

Fair Income Distribution

• A fair difference between high and low income.
• Wealth is distributed equally within a country, avoiding poverty.

Additional Objectives

• Governments often have additional objectives they try to manage alongside the main macroeconomic objectives.
• These include equity and environmental sustainability.

Equity

• Participation of minority groups.
• Equal and fair opportunities.

Environmental Sustainability

• Not to be confused with sustainable debt.
• Development and growth that does not compromise the resources of future generations.