Answer to Question #294185 in Macroeconomics for lorr

Question

what is the goal of macroeconomics?

Answer 1

what is the goal of macroeconomics?

1. Keeping Inflation is low. Inflation is defined as a steady rise in the price level. The change in inflation over time is referred to as the rate of inflation. Central banks want to control the rate at which prices rise at a minimal level of growth. Every dollar you own buys a lesser proportion of an item or service as inflation grows.
2. Full Employment or Low Unemployment. When the labor force (those who are actively looking for work or who are already working) is completely employed in productive work, it is said to be at full employment. If a person does not currently have a job and is actively looking for one, he is deemed unemployed. A lower unemployment rate indicates that the economy is more productive. This goal entails that as many people as possible are employed, implying that the economy is operating at or near full capacity.
3. The balance of Payments should be in Equilibrium. In the Balance of Payments, equilibrium indicates that a country's exports or imports should be about equal to its imports or exports. It is not good for the economy to have a high balance of payments deficit or excess.
4. Non-Inflationary Growth. To put it another way, this is long-term, steady, and sustainable economic growth and development that is "real" (non-inflationary). A movement outward in an economy's Production Possibility Curve indicates economic growth (PPC). The rise in a country's total production, or Gross Domestic Product, is another term to describe growth (GDP). The central bank and government would want to see an increase in economic growth without an increase in inflation.
5. Income Distribution That Is Fair. When income is distributed fairly or equally, the gap between the wealthy and the poor is kept to a minimum. Fair or equitable does not imply equality, rather it is a relative term. What may seem fair to one person may not be acceptable to another. The government does not want all of the wealth to be concentrated in the hands of a few people.