Question

identify 3 macroeconomic goals. the three measurments for the goals. what are the three problems in acheiving those goals?

Answer 1

3 micro economic goals

• Low inflation
• Low unemployment
• Fair Distribution of Income

Low inflation

• Inflation is the rise in price level
• Lower inflation makes life easier
• The measure to achieve the goal is

1. Control of money supply
2. Wage controls
3. less employment

• The problem in lower inflation

1. reduces the capital income
2. Reduces employment
3. Reduces production of commodities

Low unemployment/ Full employment

• It is what when there is all labours are employed
• The measure to achieve it is by

1. giving lots of small jobs in govt,
2. Give financial help for people to start business
3. More jobs with less salary

• The problem is in higher employement is that

1. it increases inflation
2. Produces problem in salary distribution
3. Economic loss

Fair distribution of income

• gap between the rich and the poor is not too large in this
• government doesn’t want all the wealth concentrated with a small group of people
• Measures are

1. Be equitable to all people
2. Give what is fair for the job done
3. Remove penalities

• The problems are

1. Conflict of work wage ratio
2. Reduces wage for a person
3. Reduces employment

HOPE THIS HELPS

PLEASE COMMENT FOR DOUBT

THANKS