Major objectives of

macroeconomic policy
1.
2.
3.
4.

The four major objectives are:

Full employment
Price stability
A high, but sustainable, rate of economic growth
Keeping the balance of payments in equilibrium.
1.Economic growth
It is the growth in the size of the overall economy of a country. The
measuring scale of acountrys development is its growth and size of its
economy. The ultimate aim of anycountry in the world is to strive and create
maximum wealth by using minimum resources.
If the growth in real output of a country is more than the growth of its population,
thestandard of living becomes higher.
2.Maximum employment for its citizens
The fundamental motto of an economic system is to empower the citizens
of a country toearn and create wealth. Only employment to all the citizens
gives the power to do this.
If the overall employment of citizens is high, it will result in a greater
amount of goods andservices available for the population as a whole.
Greater employment results in greatermoney flow and transactions thereby
resulting in even greater employment.
3.Price stability (controlling inflation)
Inflation is basically the price rise of the products and services available in
a country.
Increasing inflation pushes the buying power of money downwards. This
results in thepopulation spending more and more of their hard-earned money for
the same productsand services available.
Inflation has a detrimental effect on the economy because itincreases
uncertainty on returns and costs which results in decreasing investments.
4.External Balance
Exports,Imports and other various capital outflows and inflows must be in
balancebetween the country and the rest of the worldYes, there is a conflict
between achieving all of them at the same time.
Economic growthis the prime motto of all nations of the world. But the
various efforts taken to boost thegrowth of the economy will affect the
inflation and unemployment.
If not controlledproperly, higher economic growth will lead to higher
inflation.
In the long run, higherinflation does not promote employment or economic
growth. Price stability (low inflationor inflation under control) promotes
financial stability and economic growth. A negativeexternal balance will
destabilize the overall economy of the country in the years to come.