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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
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