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Respond to this post In my opinion, Macroeconomics aims not only to increase employment, but also to maintain the inflation rate, increase GDP and economic
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In my opinion, Macroeconomics aims not only to increase employment, but also to maintain the inflation rate, increase GDP and economic growth. When the economy has a 100 percent employment rate then there is always inflation. Inflation defeats the objectives of macroeconomics, which is to have a reasonable inflation. Higher employment leads to higher income levels, which causes higher prices for goods and services, resulting in a reduction in the availability of goods and services due to higher demand and inflation. In order to reduce the inflation, the demand must be reduced, which can be controlled by reducing the income of the people and thus unemployment will reduce the inflation and cause balanced economic growth and balanced inflation. Hence, unemployment is not always a bad thing.
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