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rucial Targets of Macroeconomics
Macroeconomics is an important subject of economics that helps to a great extent in maintaining the economical stability and encourages national growth too. There are four important targets of macroeconomics that are discussed below.
The most important objective of a developing as well as developed country is to solve the employment issues of the nation. There are five basic causes of unemployment which includes structural, cyclical, underemployment, and frictional, seasonal as well as institutional unemployment.
Another important target is to control the conditions of inflation. It is a condition when the price rises consistently i.e. from month to month and year to year. The factors contributing to this condition includes the demand pull and the cost push factors. Demand pull refers to the situation where the aggregate demand becomes much more than the aggregate supply. Whereas the cost push is the condition when the increasing costs in the wages and taxes leads to an increase in the price level. Moreover inflation can lead to poverty and unemployment which can hamper the growth of the nation.
The most crucial target that macroeconomics aims at is the economic growth. It is basically the change in the gross national product with very minor or no change in the overall structure of the society. Some of the prominent benefits of it include the following.
A considerable growth in the living standards of the people.
An increase in employment.
Improvement in the infrastructure.
Encouraging investment policies.