Three Major Macroeconomic Goals Essay

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Assignment 2 The three major macroeconomic goals of an economy should be economic growth, low unemployment/full employment, and low inflation rates. Economic growth occurs when an economy ‘increases its ability to produce goods and services’ (AmosWeb, 2012). The growth or loss of the economy is measured by the production of goods made in a year compared to the production of goods made in the previous year. If there is a greater production of goods and services in the present year, then there has been a growth in the economy. Low unemployment/full employment is when goods and services are produced through all resources. These resources primarily include labor, capital, land, and entrepreneurship. Lastly, low inflation rates are potential…show more content…
According to Economicshelp.org, the government can highly benefit from the economic growth because of the excess of goods and services that allowed people to spend more, will allow the government to receive large amounts of revenue from income tax. According to an article in the financial post, Canada’s economic growth has decreased in recent years; this is primarily due to increase in prices or increases in inflation rates. Alberta and Saskatchewan though lead other provinces in economic growth. I believe this is due to the oil companies in Western Canada that have higher levels of production and greater resources that are being availed by a larger amount of employees. The second major macroeconomic goal is lower unemployment/full employment. When a greater number of people are employed, it can vastly improve the production in an economy. This relates directly to the economic growth mentioned above. Lowering the unemployment rates has a number of benefits, according to an article by Casey Reader; one of the biggest benefits of full employment is `Mobilization of Resources’. This states that economies could become more sustainable and wealthy if they add more labor as possible, this would increase production and a larger amount of people would have income paying jobs. According to Reader, in the same article, out of the other few benefits, a lower unemployment rate will help in decreasing poverty as well. Since businesses are producing a
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