What should be the goals you are needing to achieve in macroeconomics?

Asked on by barbiedot

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

I assume that the “you” in this question would refer to some part of the government.  This would be something like a central bank or the national legislature.  This is because it is only countries as a whole that can try to do things to affect the macroeconomy.  Individuals or companies cannot do much to affect macroeconomics.  This is because macroeconomics is the study of the economy of a country as a whole.

Governmental agencies that are concerned with macroeconomics are generally trying to achieve two goals.  First, every government wants to try to ensure that its gross domestic product (GDP) will rise at a steady rate.  If this happens, it means that the macroeconomy is growing steadily.  Economic growth is important because it allows the people in a country to enjoy a rising standard of living.  Second, every government wants to ensure that the rate of inflation does not become too high.  If inflation becomes excessive, a country’s economy can be endangered.  Excessive inflation leads to a great deal of uncertainty on the part of consumers and firms.  This uncertainty leads to less economic activity and reduced economic growth.

So, the goals that we should try to achieve in macroeconomics are steadily growing GDP and a low and stable rate of inflation.

barbiedot's profile pic

barbiedot | Student, Undergraduate | (Level 1) Valedictorian

Posted on

What about the course in general? how am I supposed to help out to have a steady GDP and or low stable inflation. 

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