Macro-economic policy objectives, Managerial Economics

Assignment Help:

Macro-economic policy objectives

The major macro-economic policy objectives which the governments strive to achieve are:

i. Full employment

One of the main objectives of all governments is the control of employment or full employment.  However economists are not agreed on what constitutes full employment. But we can say full employment exists when everyone who wants a job and is capable of doing a job is able to find one.

ii. The control of inflation

Since most monetarists believe that inflation has a negative effect upon economic growth as  it increases uncertainty and discourages savings, maintaining stable  prices usually is a major objectives of most governments.

These two foregoing objectives can be regarded as "good housekeeping".

iii. High Growth rates

For most people, economic growth remains the prime objective of policy as it allows  everyone to enjoy a better standard of living.

iv. Balance of payments equilibrium

Most governments like to have an equilibrium position in the BOP accounts as there are problems associated with both sides of disequilibrium.

v. Equitable distribution of income


Related Discussions:- Macro-economic policy objectives

2 questions., Question 1: Martha National County Club is a golf club in an ...

Question 1: Martha National County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of the club an

Concept of isocost, The concept of isocost In the use of resources, fi...

The concept of isocost In the use of resources, firms are faced with opportunity cost.  For every addition of say capital, they must forego a unit of say labour. Expositio

Consumption function, The Consumption Function The consumption functio...

The Consumption Function The consumption function is the relationship  [expressed in mathematical or diagrammatic form] between planned consumption and other independent varia

A monopolist faces a straight line demand curve which passes, A monopolist ...

A monopolist faces a straight line demand curve which passes through the point Rs 10 per ton on the price-cost axis and through the point 8000 tons on the quantity axis. The fir

Kinds of bargaining arrangements, Kinds of Bargaining arrangements Bas...

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

Free trade, free trade promotes a mutually profitable regional division of ...

free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes possible higher standards of livi

Nash equilibria of this game, Two competing firms are each planning to intr...

Two competing firms are each planning to introduce a new product. Firm 1 will decide whether to produce product A, product B or product C, while firm 2 can choose between products

Explain the demand for a commodity, Explain the demand for a commodity ...

Explain the demand for a commodity The functional relationship between demand for a commodity and its various determinants may be expressed mathematically in terms of a demand

Describe about regression analysis, Describe about regression analysis ...

Describe about regression analysis An illustration from the automobile industry is befitting for explaining the forecasting method that uses simple regression analysis. Let's p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd