Equity vs. 2.3 Macroeconomic objectives: Low unemployment . Objectives represent the purpose for which an organisation has been started. Another macroeconomic objective is low and stable rate of inflation.. Definitions: Inflation is persistent increase in the price level of an economy over a period of time. Equitable distribution of income and wealth – a fair share of the national ‘cake’, more equitable than would be in the case of an entirely free market. The final macroeconomic objective we will discuss is that of equity in the distribution of income. In this tutorial, our aim is to summarise the five objectives of the South African government’s macroeconomic policy. 6. Macroeconomics: Macroeconomics is the study of the economy as a whole such … Economic Growth 4. Macroeconomics is concerned with issues, objectives and policies that affect the whole economy. ; Deflation – decrease in the price level of an economy over a period of time. Some of the main government aims for economy are as follows: 1. The five major economic goals are full employment, economic growth, efficiency, stability and equity, and they are divided into both macroeconomic and microeconomic goals. ! On the macroeconomics spectrum, policies are made to reach economic growth, stability and full employment. Objectives guide and govern the actions and behaviour of businessmen. around 3%) Current account – balance of payments. This study has three objectives with regard to the South African economy in the post-apartheid era: (i) Investigating the factors that influence economic growth by a simultaneous macro-econometric model; Balance of … Unemployment: when a person is actively searching for a job, which they are able and willing to do, but cannot find one.. Unemployment rate: the proportion of unemployed in the labour force =number of unemployed/labour force x 100 . Equality: … ; Disinflation is fall in the rate of inflation. Economic growth can indeed transform people’s lives and enable them to live longer because of better nutrition, housing and health care. There are other objectives which are increasingly becoming important for governments: 5. Price Stability 3. macroeconomic policies: government expenditure, income tax rate, nominal interest rate, inflation target, foreign aid and domestic credit. Redistribution of Income 5. We will then clarify the relative importance of each objective. How does the government achieve the main 5 macroeconomics objectives? ADVERTISEMENTS: Five most important objectives of business may be classified are as follows: 1. economic objectives, 2. social objectives, 3. human objectives, 4. national objectives, 5. global objectives. Full Employment 2. The five macroeconomic objectives ID:CVTME Video Overview . Price stability 3. Economic growth – positive and sustainable growth (The UK, long-run trend rate is around 2.5%) Low inflation (UK target 2% +/-1) – Low unemployment / Full employment (e.g. Satisfactory position (i.e. As mentioned before one of the possible consequences of economic growth in a free market economy is inequality in the distribution of income. Macroeconomics provides government policymakers with a set of tools that can be employed to help achieve certain macroeconomic objectives deemed desirable for a nation. avoid unsustainable current account deficit) 3. to encourage economic growth 4. to encourage trade and secure a favourable balance of payments. Full employment 2. The four major objectives are: 1. The main macro-economic objectives. All economic analysis that refers to aggregates is macro. 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