The final macroeconomic objective we will discuss is that of equity in the distribution of income. Balance of … 6. ; Disinflation is fall in the rate of inflation. Objectives represent the purpose for which an organisation has been started. Another macroeconomic objective is low and stable rate of inflation.. Definitions: Inflation is persistent increase in the price level of an economy over a period of time. Redistribution of Income 5. Macroeconomics provides government policymakers with a set of tools that can be employed to help achieve certain macroeconomic objectives deemed desirable for a nation. On the macroeconomics spectrum, policies are made to reach economic growth, stability and full employment. The five macroeconomic objectives ID:CVTME Video Overview . Satisfactory position (i.e. How does the government achieve the main 5 macroeconomics objectives? Unemployment: when a person is actively searching for a job, which they are able and willing to do, but cannot find one.. Unemployment rate: the proportion of unemployed in the labour force =number of unemployed/labour force x 100 . We will then clarify the relative importance of each objective. Price Stability 3. Macroeconomics is concerned with issues, objectives and policies that affect the whole economy. The main macro-economic objectives. avoid unsustainable current account deficit) Macroeconomics: Macroeconomics is the study of the economy as a whole such … 2.3 Macroeconomic Objectives Ruru Hoong Oct’ 2014 • Governments have to pay monthly benefits to the unemployed; fiscal resources could have been used in the provision of public goods or merit goods (opportunity cost) • Puts pressure on government’s fiscal conditions (increased budget deficits) 5. All economic analysis that refers to aggregates is macro. There are other objectives which are increasingly becoming important for governments: 5. Economic growth – positive and sustainable growth (The UK, long-run trend rate is around 2.5%) Low inflation (UK target 2% +/-1) – Low unemployment / Full employment (e.g. Economic Growth 4. ! We will give a definition of each concept and indicate how it is measured. As mentioned before one of the possible consequences of economic growth in a free market economy is inequality in the distribution of income. Full employment 2. 3. to encourage economic growth 4. to encourage trade and secure a favourable balance of payments. The four major objectives are: 1. Full Employment 2. The five major economic goals are full employment, economic growth, efficiency, stability and equity, and they are divided into both macroeconomic and microeconomic goals. In this tutorial, our aim is to summarise the five objectives of the South African government’s macroeconomic policy. 2.3 Macroeconomic objectives: Low unemployment . Equitable distribution of income and wealth – a fair share of the national ‘cake’, more equitable than would be in the case of an entirely free market. Objectives guide and govern the actions and behaviour of businessmen. ; Deflation – decrease in the price level of an economy over a period of time. Price stability 3. This study has three objectives with regard to the South African economy in the post-apartheid era: (i) Investigating the factors that influence economic growth by a simultaneous macro-econometric model; macroeconomic policies: government expenditure, income tax rate, nominal interest rate, inflation target, foreign aid and domestic credit. Equality: … ADVERTISEMENTS: Five most important objectives of business may be classified are as follows: 1. economic objectives, 2. social objectives, 3. human objectives, 4. national objectives, 5. global objectives. 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