Answer to Question #107596 in Microeconomics for Amir Hossain

Question

4. What are the major objectives of macroeconomics? Write a brief definition of each of these objectives. Explain carefully why each objective is important.

Answer 1

The main macroeconomic goals are: stabilizing the growth of national output, stabilizing the level of prices, achieving a high level of employment, and regulating the foreign trade balance.

Stabilization of the growth of national production is important for the formation of the country's production strategy, the determination of the most priority sectors, the competent redistribution of the country's scientific and technical potential in order to achieve the greatest efficiency.

Stabilization of the price level is important for strengthening the national currency and for creating an atmosphere of security for citizens of the country, which improves the psychological climate in the country, increases the level of confidence in the state.

Achieving a high level of employment is necessary to increase the quantity of finished products produced in the country from the point of view of the economy and to prevent asocial behavior from the point of view of society.

Regulation of the balance of foreign trade will increase the amount of money received from the export of high-tech or products unique in terms of consumer qualities when importing products whose production in this country is not effective.