Answer to Question #312631 in Microeconomics for Natalie

Question

There are various main objectives in the macroeconomics policy, each of which contributes to an explanation and understanding of macroeconomics. Briefly define the following macroeconomic objectives and explain in your own words how each can be applied to improve the economy:

1. Economic growth and increasing employment (5)
2. Stability of output and employment levels (5)
3. Stable and low inflation (5)
4. Distributional and equity objectives and the reduction of inequality (5)
5. Economic development and poverty reduction (5)

Out of 25

Answer 1

Economic growth and increasing employment

It is important in creating more employment because the economy's success in terms of productivity can be able to sustain more employment opportunities of a country successfully.

Stability of output and employment levels

The stability of the output levels in the economy means that the economy can sustain itself in terms of employment capacity and productivity.

Stable and low inflation

When a country is stable in all sectors like the political and the currency, the products tend to increase, which enhances higher levels of employment in the country.

Distributional and equity objectives and the reduction of inequality 

The distribution of the equity levels ensures equality in all segments of the government. By enhancing equity, there is a significant reduction in inequality, thereby creating more access to many opportunities, which increases the level of employment in the economy.

Economic development and poverty reduction

When there is economic development, the productivity and the output of the economy increase and can sustain themselves in the long run, the poverty levels are reduced significantly because of the rise in the ranks of employment in the country.