Answer :
Final answer:
The four fundamental macroeconomic goals for a healthy economy are economic growth, low unemployment, low inflation, and balance of payments equilibrium. These goals contribute to a stable, prosperous economy and are essential for improving living standards, ensuring employment, maintaining currency value, and avoiding excessive national debt.
Explanation:
When evaluating the overall health of the macroeconomy, it is essential to focus on four key goals, although initially, three primary objectives are highlighted: economic growth, low unemployment, and low inflation. These goals are crucial for a stable and prosperous economy. However, to provide a more comprehensive understanding, a fourth goal often considered important is balance of payments equilibrium.
Economic growth is significant as it reflects the increase in a country's output of goods and services over time. It is measured by the rise in real Gross Domestic Product (GDP) and is vital for improving living standards and increasing national income.
The goal of low unemployment aims to ensure that all individuals willing and able to work can find employment without significant difficulty. This is essential for social stability and individual well-being, as employment provides income and a sense of purpose.
Maintaining low inflation is key to preserving the value of money and maintaining consumer and business confidence. Controlled inflation rates prevent the erosion of purchasing power over time.
The additional goal, balance of payments equilibrium, involves ensuring that a nation's total payments to other countries closely match its total receipts from other countries. It helps in preventing excessive national debt and maintaining currency stability.
