ib econ sl section 3 1. (a) Explain why many governments pursue the macroeconomic goals of low inflation and low unemployment. [20 marks]

Respuesta :

The goals of macroeconomics is to maximize the people's standard of living and to achieve a stable economic growth.

The macroeconomics goals also includes:

  • minimizing unemployment
  • increasing productivity
  • controlling inflation etc.

The reason government pursue macroeconomic goals of unemployment is to reduce government borrowing.

The reason government pursue macroeconomic goals of low inflation is to make foreign and domestic firms be more confident and optimistic to invest therein.

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