Six Macroeconomic Objectives

What are the 6 macroeconomic objectives?.

Looking at the question, one will look at the following, price stability, economic growth, income inequality, balance of payments, unemployment, and economic development. During this assignment, we are going to look at each of the macroeconomic on their own, then how they interact with each other. Furthermore, which of these macroeconomic aims are the most important to our economic environment?.

• Price stability

Price stability is how sustainable the inflations rate is towards the consumer. Therefore, according to through inflations we measure consumer price index (CPI), what the consumer spends on a basket of goods and services over a long period. According to Statssa (2015) “the CPI tracks the

Looking at the stats below South Africa has come down from 25.4% to a 24.3% in the last quarter of 2014 (Taborda, J. 2015).This means one out of every four people in South Africa is unemployed.

So what are some causes of unemployment?. The following factors contribute to unemployment, lack of education, the poor education level of skilled people, crime, and minimum wages just to mention a few.

• Economic development

People like to think that economic growth and economic development are similar, but that isn’t so, there is a huge difference. Economic development is a government policy to increase the economic, social welfare and ensuring a stable political environment. Economic growth, on the other hand, is the general increase in the country products and services output. Through this policies the government intentions are price stability, decrease the unemployment rate through business finance, marking and small business start-ups and

(2015). Consumer Price Index. Available: http://beta2.statssa.gov.za/publications/P0141/P0141January2015.pdf. Last accessed 21 February 2015.

• Fourie,F & Burger,P. (2009). Economic growth and increasing employment. In: David Merrington How to think and reason in Macroeconomoics. 3rd ed. Claremont: Mthunzi Nxawe. 12.

• Statssa. (2015). Gross domestic product. Available: http://beta2.statssa.gov.za/publications/P0441/P04414thQuarter2014.pdf . Last accessed 1 March 2015.

• Yglesias,M. (2014). What is income inequality. Available: http://www.vox.com/cards/income-inequality/what-is-income-inequality. Last accessed 1 March 2015.

• Donnelly,L. (2014). Three Million lifted out of poverty. Available: http://mg.co.za/article/2014-11-06-three-million-lifted-out-of-poverty . Last accessed 1 March 2015

• Taborda,J. (2015). South Africa unemployment rate declines to 24.3% inQ4. Available: http://www.tradingeconomics.com/south-africa/unemployment-rate . Last accessed 2 March 2015.

• Chicheke,A. (2009). Monetary Policy, Inflation, Unempolyment and the Phippils Curve in South Africa. Monetary Policy, Inflation, Unempolyment and the Phippils Curve in South Africa. 1 (1),