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 outcomes of economic growth and full employment and vice-versa.
Economic growth is the yearly increase in production of goods and services, or also the change in the annual GDP. Economic growth is a major economic goal because it has in can result in various benefits for the economy. Firstly it can improve living standards for people, consumers and businesses. For economic growth to take place, goods and services have to be produced at a faster rate resulting in an excess amount of goods and services left over for people. This could make things better for households; they have a greater amount of goods and services to provide for their families, leading to a better living standard. Economic growth is also directly proportional to technological advances as time goes on (Christian, 1968). This is simple to understand since as time passed newer more efficient ways of producing goods and services for the economy were established. According to economcadventure.org there has been a steady increase of GDP/GNP overtime.
Another benefit from economic growth is the increasing amounts of employment. When goods and services are produced at such a high rate, companies would require more employees to help produce the goods and...
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