Answer :
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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Final answer:
Governments pursue low inflation and low unemployment as macroeconomic goals to maintain economic stability, promote investment, and improve living standards. Low inflation maintains stable prices and increases consumer purchasing power, while low unemployment signifies a strong labor market and stimulates economic growth.
Explanation:
Many governments pursue the macroeconomic goals of low inflation and low unemployment because these two factors are closely linked to the overall health of an economy. Low inflation helps to maintain stable prices, which supports consumer purchasing power and business investment. Low unemployment, on the other hand, signifies a strong labor market with high levels of employment, which contributes to economic growth and stability.
When there is low inflation, the value of money remains relatively stable over time, ensuring that individuals and businesses can plan for the future with confidence. This promotes economic growth as businesses are more likely to make long-term investments, and individuals are more likely to spend and invest their money.
Low unemployment, on the other hand, is a sign of a healthy economy where there are ample job opportunities available. This not only improves the standard of living for individuals, but it also increases consumer spending, which further stimulates economic growth. Additionally, low unemployment helps to reduce income inequality and social unrest, as more people have access to employment and income.
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