The Government set objectives for its economy, Macroeconomic performance measures how well an economy is doing with its set objects. Unlike Micro Economics, it is not based on the living standards for the majority of that population. The main aim for the policy is usually an improvement in the real standard of living.
The term real means, we have taken into account the effects of rising Prices so that we can measure how many goods and services we can afford to buy.
If we Zoom out of standard living look at the bigger picture, in real standard living we will see the following questions arise between economists.
1. Jobs - Are more people finding work in the jobs that they are suited to and which pay a living wage? how high is unemployment? is the economy creating enough jobs for people entering the labour market each year?
2. Prices - Are price rises under control creating the conditions for price stability
3.Trade - Is the economy performing well in trading goods with other countries? Is the economy living within its means by exporting enough to pay for imported producers?
4. Growth - how successful has the economy been in achieving growth in the short term and in laying the foundations for expansion in the future?
5. Public services - have the benefits of growth flowed through the greater and improved provision of key public services such as education, health & transport?
6. The environmental - the effects of economic activity on our natural built environment become evermore important over the years? - Many economists now focus on whether expanding economy is sustainable in terms of it's environmental impact
These questions pop up in government meetings and in newspapers every day - "EXPAND EXPAND, there is a decline in growth due to inflation.. or - we have a vast improvement in economic growth compared to last year & next year the economy can grow even bigger by 3%" - "but won't that be to big for our natural environment & cause problems, such as over population?"
- I need a coffee break.. this blogging on studies & expansion, inflation needs some new found meditation.. - Until next time!!
Shaun Michael.
No comments:
Post a Comment