Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Commanding Heights The Battle For The World Economy

Authors: Daniel Yergin, Joseph Stanislaw

1st Edition

068483569X, 9780684835693

More Books

Students also viewed these Economics questions

Question

What are the benefits of the direct assurance approach

Answered: 1 week ago

Question

Define job pricing. What is the purpose of job pricing?

Answered: 1 week ago

Question

What are some companywide pay plans? Briefly discuss each.

Answered: 1 week ago