Question

In relation to economic growth and employment.

Why government or decision makers try to achieve these TWO macroeconomic objectives

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.

Answer 1

Every country has its macroeconomic objectives to achieve to sustain the economy. The goals should give the long term sustainable development of the country. The primary aim of every country is a balance between economic growth and employment. The economic growth considered as the balance of both employment growth and productivity growth. The economic growth in both extensive and intensive is an essential factor to determine employment growth. Economic growth is the result of the expansion of aggregate demand in the economy. It is in either productivity growth or input growth. The input growth is the expansion of employment and capital in the economy. The country with higher employment growth is the root of the growth process. The economic growth alone cannot improve the living standard of the people. Economic growth with sustainable employment growth will enhance sustainable development.