Various objectives which society wants to fulfill are explained as macro economic
objectives.
Expected targets to direct macro economic variables are named macro economic
objectives
Macro economic objectives are as follows
Full employment
Economic Stability
Equity
Economic growth
Sustainable development
Full employment means all resources of the economy which are used in maximum
efficiency to produce goods and services.
Equity means to minimize the unequal distribution of income.
Equity does not mean equal distribution of income among house holds.
Earnings can be varied with quality of human resources and productivity but it is not
contradictory with equity.
Macro economic stability is explained as maintaining the internal and external
stability in the economy.
Price stability and full employment are important in internal stability.
To maintain fixed foreign exchange rate and a balance B.O.P is important in external
stability
The reason for economic growth is increase in real National Production for a period
of time and production possibilities curve will shift to the right in economic growth.
Standard of living will increase if the increased real income is divided among
people fairly.
Sustainable development is explained as a balanced development of economic,
social and environmental sectors.