Economic Objectives:

1. Macroeconomics aims to attain full employment or low unemployment so that

negative externalities such as costs to the government will be avoided.
2. For the economy to survive, price stability is controlled using Macroeconomics
and therefore, reducing the possibility of a recession.
3. Macroeconomics is concerned with high, but sustainable, rate of economic
growth for the economy to prosper.
4. In Macroeconomics, keeping the balance of payments in equilibrium is also
very important to maintain the economys sustainability.

Macroeconomic Problem: Unemployment


In the economy today, labor is very important but because of certain problems
and constraints, many are unemployed. Unemployment is one of the most serious
problems in Macroeconomics. When factors of production that are willing and able to
produce goods and services are not actively involved in production, unemployment
takes place. This also occurs when the macro economy does not adequately achieve full
employment which is one of its major objectives. In turn, those who are unemployed
may have less or no income at all which results to the lower living standards of the
people in the economy.

This becomes a problem because less output is produced and thus, the economy is less
able to address the scarcity problem which is also due to the peoples unending needs.
Too little or too much demand for gross production cannot also be avoided that is why
the same also goes for unemployment. Furthermore, governments also incur losses and
negative externalities because of unemployment. The bottom line for this is that
Macroeconomics, which is defined as; a study that is concerned with issues, objectives,
and policies that affect the whole economy, is a tool to help the economy to survive.