Macroeconomic objectives of governments
What are the key macroeconomic objectives of governments?
The key macroeconomic objectives of governments typically include promoting economic growth, maintaining price stability, achieving full employment, ensuring a favorable balance of payments, and promoting income distribution and social welfare. These objectives may vary across different countries and contexts.
How does the government measure and monitor unemployment and inflation?
The government measures and monitors unemployment and inflation through various statistical indicators and surveys. For unemployment, governments collect data through household surveys, employment registers, and social security systems to determine the number and percentage of people who are unemployed and seeking work. For inflation, governments use consumer price indices (CPI) or producer price indices (PPI) to track changes in the average prices of goods and services over time. These indicators provide valuable information for policy-making, economic planning, and evaluating the health of the labor market and overall economy.