Macroeconomics is the study of how a national economy works with a view to understanding the interaction between growth in national income ,employment and inflation. It also looks at balance of trade and the rate of exchange. Most national governments have four main objectives for their national economies. These are; achieve a low and stable rate of inflation in the general level of prices, achieve a high and stable level of employment, and therefore a low level of unemployment, encourage economic growth in the national output and income, encourage trade and secure a favourable balance of international transactions. A government may also have additional objectives which aim to improve the economic welfare of people in the economy , including; to reduce poverty and reduce inequalities in income and wealth, reduce pollution and waste and therefore encourage more sustainable economic growth. In addition to this each government has different objectives to obtain depend on their targets. This essay will identify and explain the principal macroeconomic objectives and analyses the macroeconomic performance and standard of living in Turkey and will compare it with the Japan, China and Italy. Macroeconomic objectives
Inflation refers to a general and sustained rise in the level of prices of goods and services. As a result governments may want to maintain a low and stable rate of inflation which is one of the important macroeconomic objectives. If a country has a high level of inflation which reduces the purchasing power of people and they became worse off. The reason why countries try to maintain low level of inflation is that investors may feel confident about investing money in a country which increases aggregate demand and reduces the level of unemployment. Another main objective is that to achieve full employment or low level of unemployment. Unemployment defined by Sloman (1998) ‘those of working age who are without work , but who are available for work at...
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