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

Elasticity of demand, When given two demand functions to calculate elastici...

When given two demand functions to calculate elasticity of demand do you use point elasticity or arc elasticity of demand formula

Determine the elasticity of demand, Elasticity of Demand As the law of ...

Elasticity of Demand As the law of demand establishes a relationship between quantity demanded and price for a product, it doesn't tell us exactly as how weak or strong the rel

Cheapening of materials and equipments, Q. Cheapening of Materials and Equi...

Q. Cheapening of Materials and Equipments? Expansion of an industry increases the demand for different kinds of materials and capital equipments. This will result in large scal

How is marginal analysis lead to profit-maximizing quantity, How is margina...

How is marginal analysis lead to profit-maximizing quantity of output? Marginal Analysis leads to Profit-Maximizing Quantity of Output: The price-taking firm’s optimal outpu

State the theory of capital and investment, Theory of Capital and Investmen...

Theory of Capital and Investment:  Theory of Capital and Investment evinces the below significant issues:  Selection of a viable investment project Efficient allocatio

Short run cost function, how much output should a firm produce? 80$ per uni...

how much output should a firm produce? 80$ per unit C(Q)=40+8Q+2Qsquared

Concept and phases of trade cycle , CONCEPT AND PHASES OF TRADE CYCLE ...

CONCEPT AND PHASES OF TRADE CYCLE Broadly speaking, the trade or business cycles are those fluctuations which recur in economic activity with a certain degree of regularity fo

Rock-paper-scissors game, A mother is torn among choosing her son Leonardo ...

A mother is torn among choosing her son Leonardo and her daughter Meryl to have the last bar of chocolate in her cupboard. As both her children's needs the chocolate and she needs

Discount rate (bank rate), Discount Rate (Bank Rate) This is the rate ...

Discount Rate (Bank Rate) This is the rate on central bank advances and is also called official discount rate or "minimum lending rate".  When commercial banks find themselves

Determine the studies of managerial economics, Determine the studies of Man...

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

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