Question

Which of these are among the macroeconomic goals of governments? Check all that apply. steadily increasing the gross domestic product, avoiding overspending at all costs, keeping citizens employed, helping limit economic growth, managing prices throughout the economy

Answer 1

The answer are choices 1,3 and 5.

Answer 2

Among the macroeconomic goals of a goverment, the following ones can be found:

• Steadily increasing the gross domestic product. GDP figures which steadily increase means that there is a sustained economic growth in the country. Therefore, the country registers high levels of production, due to the existence of high demand levels: for consumption of national and foreign goods, for investment opportunities, etc.
• Keeping citizens employed. This goals is closely related to the previous one. If there is economic growth and high demand, more production is required to serve consumers and firms need to hire more people.
• Managing prices throughout the economy. Keeping inflation levels stable helps to ensure that the purchasing power of citizens is maintained, therefore, that prices are salaries are in line with each other. It is also a mechanism to keep demand levels high as with high inflation levels people cannot afford many products and demand levels are seriously hampered.