Definition of Macroeconomics, Macroeconomic Policy, Targets,Objectives and its Conflicts
Macroeconomics :- Macroeconomics is the branch of economics that studies the behaviour and performance of an economy as a whole. In focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product(GDP) and inflation. Macroeconomic policy :- It refers to the instruments by which a government tries to regulate or modify the economic affairs of the country in keeping view with certain objectives. "It attempts to assess the behaviour of the economy as a whole and to seek ways in which its aggregate performance might be improved". ● Policy Targets and Instruments :- • Targets :- (a)- To achieve full employment at the rate of 3% unemployment. (b)- To achieve price stability at an annual inflation rate of 5% per annum. (c)- To attain the growth rate of 5% per annum for the economy. ● Objectives of Macroeconomics Policy :- (a)- Full employment (b)- Balance of payment (c)- Price Stability (d)-...










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