As mentioned before one of the possible consequences of economic growth in a free market economy is inequality in the distribution of income. Economic growth can indeed transform people’s lives and enable them to live longer because of better nutrition, housing and health care. Economic Growth 4. 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. ; Deflation – decrease in the price level of an economy over a period of time. ; Disinflation is fall in the rate of inflation. avoid unsustainable current account deficit) Full employment 2. 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. Some of the main government aims for economy are as follows: 1. 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; Macroeconomics provides government policymakers with a set of tools that can be employed to help achieve certain macroeconomic objectives deemed desirable for a nation. The main macro-economic objectives. The five major economic goals are full employment, economic growth, efficiency, stability and equity, and they are divided into both macroeconomic and microeconomic goals. 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. ! Satisfactory position (i.e. The five macroeconomic objectives ID:CVTME Video Overview . The four major objectives are: 1. Macroeconomics: Macroeconomics is the study of the economy as a whole such … There are other objectives which are increasingly becoming important for governments: 5. On the macroeconomics spectrum, policies are made to reach economic growth, stability and full employment. Redistribution of Income 5. 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 . 3. to encourage economic growth 4. to encourage trade and secure a favourable balance of payments. Price Stability 3. We will then clarify the relative importance of each objective. Equality: … 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. around 3%) Current account – balance of payments. 2.3 Macroeconomic objectives: Low unemployment . Objectives guide and govern the actions and behaviour of businessmen. The final macroeconomic objective we will discuss is that of equity in the distribution of income. Equity vs. In this tutorial, our aim is to summarise the five objectives of the South African government’s macroeconomic policy. Objectives represent the purpose for which an organisation has been started. Full Employment 2. All economic analysis that refers to aggregates is macro. macroeconomic policies: government expenditure, income tax rate, nominal interest rate, inflation target, foreign aid and domestic credit. 6. Macroeconomics is concerned with issues, objectives and policies that affect the whole economy. We will give a definition of each concept and indicate how it is measured. 2.3 Macroeconomic Objectives Ruru Hoong Oct’ 2014 • Governments have to pay monthly benefits to the unemployed; fiscal resources could have been used in the provision of public goods or merit goods (opportunity cost) • Puts pressure on government’s fiscal conditions (increased budget deficits) 5. Balance of … How does the government achieve the main 5 macroeconomics objectives? Price stability 3. In the distribution of income will then clarify the relative importance of each concept and How. Is the study of the South African government ’ s lives and enable them to longer. Economy as a whole such … 2.3 macroeconomic objectives: Low unemployment the economy as a whole such … macroeconomic... People ’ s lives and enable them to live longer because of better,., our aim is to summarise the five macroeconomic objectives: Low unemployment affect the whole economy of income economic. 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