Answer to Question #194717 in Microeconomics for Areeba Younus

Question

What are the three main goals of macroeconomics explain through examples

Answer 1

Three main goals of macroeconomics are;

First,full employment.This is achieved when all available resources are used to produce goods and services.

Second, stability.This is achieved by avoiding or limiting flactuations in employment, production and prices.It is indicated by changes in economic measures for example inflation rate and unemployment rate.

Lastly is economic growth .This is achieved by increasing the ability of the economy to produce goods and services.For example,if the economy produces more goods this year than the previous year,then it is growing.