. Choose TWO of the four macroeconomic objectives studied and:  State why governments / decision...

. Choose TWO of the four macroeconomic objectives studied and:

 State why governments / decision makers try to achieve the TWO macroeconomic objectives
 Identify key problems which may be encountered when attempting to balance these two objectives
 Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives.

The structure of your answer to this question should include a brief introduction, main body, and conclusion which summarises your views.

Expert Solution

Two objectives of macroeconomics are -

Full employment
Price stability

Why government or decision makers try to achieve these two objectives?

Full employment - full employment objective is aimsed by the government due to various social and economic benefits. As at reaching full employment , government try to eradicate poverty due to which workers get trained and skilled for the job .Even the government aims at reaching full employment so that employed people will have to pay tax which will be the revenue for the government as well as Economic growth
Price stability - Through price stability government try to control both inflation as well as deflation whatever the situation may be. price stability helps in achieving ecnomic activities as well as employment through transparency of price mechanism.

key problems which may be encountered when attempting to balance these two objectives

Whenever government try to achieve full employment , so the deficit in full employment end up in increasing the inflation . Due to which government again has to maintain the price stability
Sometimes in way of achieving the Target of price stability Interest rates in long term period will move higher which may cause interference in investment decision as well as savings

macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives are -

Public Investment as well as infrastructure - sustainable program for the public investment and infrastructure will help to create job as well as increase the productivity and economic growth due to which government moves one step ahead to reach full employment
Monetary equlibrium - monetary equlibrium is state at which an economy is in a situation where Quality demanded is equal to quantity supplied

Rahul Sunny answered 2 years ago

1. why governments or decision makers try to achieve the two macroeconomic objectives (maintaining stable and...

1. why governments or decision makers try to achieve the two macroeconomic objectives (maintaining stable and sustainable economic growth , and maintaining an acceptable level of inflation) ? 2. what are key problems which may be encountered when attempting to balance these two objectives?

Examine the link between the business cycle and the four macroeconomic objectives.

Why are local governments subordinate to the state government in which they reside?

Two macroeconomic objectives are maintaining the level of economic growth and level of unemployment Identify key...

Two macroeconomic objectives are maintaining the level of economic growth and level of unemployment Identify key problems which may be encountered when the government attempting to balance the level of unemployment and maintain the level of economic growth objectives Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives.

Explain why governments choose to pay for spending by printing money and how this relates to...

Explain why governments choose to pay for spending by printing money and how this relates to hyperinflation

choose one of the three random sampling methods we studied in this chapter, state which method...

choose one of the three random sampling methods we studied in this chapter, state which method you've chosen, and describe exactly how you would conduct a completely randomized survey of 100 Montgomery County, Tennessee, residents using this method. Make sure that the sample is truly and purely random. Assume you have unlimited resources (money, workers, time, etc.) and unlimited access to information. Describe exactly what steps you would take to choose each person in the sample. Would you be able...

Why is immigration policy controversial? In three paragraphs, explain why and in what ways state governments...

Why is immigration policy controversial? In three paragraphs, explain why and in what ways state governments have started to make their own immigration policies, despite the Constitution giving only the federal government that power (paragraph 1), why some support greater state involvement in immigration policy (paragraph 2), and what you believe and why (paragraph 3).

Four factors, each with two levels were studied in a study of the performance of a...

Four factors, each with two levels were studied in a study of the performance of a process: time (A), humidity (B), pressure (C) and the temperature (D). One replicate was run a design 2⁴ and response is presented in the following table. For this experiment use standard levels for each factor (1,2). Use MINITAB to set up and analyze the experiment up to 2-level interactions. (i.e. AB, BC, etc…) Note: the response is in not randomized runs. Explain the results!...

What are natural monopolies? Why do state governments regulate them? What options do state have to...

What are natural monopolies? Why do state governments regulate them? What options do state have to regulate them and what are the problems faced by each regulatory option?

An important feature of the financial statements of state and local governments is the two-layer reporting...

An important feature of the financial statements of state and local governments is the two-layer reporting system. In addition to the traditional fund financial statements, the Governmental Accounting Standard Board (GASB) issued Statement No. 34 to add a new layer of reporting, the government-wide financial statements. The government-wide statements are presented using the full accrual basis of accounting and with the economic resources’ measurement focus. Combined with the fund level statements, the financial overview of the governmentwide financial statements provides...

Question