Question

A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in the standard of living (for example) is a primary goal. Why do you think that is so?

please explain briefly

thank you.

Answer 1

The predominant quality of living in a nation is largely determined by economic development. The percentage difference in actual (inflation-adjusted) gross domestic product reflects economic performance. Because the U.S. annual growth rate has averaged 3 percent a year for the past hundred years, a growth rate of 3 percent is considered strong. Unemployment, as calculated by the unemployment rate, is the number of individuals who do not have a job in the work force. The country is losing a scarce resource-labour because workers lack employment, and the effect is reduced production of goods and services. Unemployment, though, is more than a statistic; it reflects the livelihoods of citizens. Although measured unemployment is impossible to not be zero, maximum employment is assumed to be a measured unemployment rate of 5 percent or less.

Inflation is a sustained spike in the average price index. There would be general unhappiness as their quality of living decreases as many individuals face a condition where the costs they pay for food, housing, and healthcare are rising much higher than the incomes they earn for their labour. For that cause, low inflation is a big priority, with an inflation rate of less than 5 percent.