Macroeconomics

Objectives of Fiscal Policy

An Easy Guide To The ” 5 Major Objectives of Fiscal Policy”

Major Objectives of Fiscal Policy As an instrument of macroeconomic policy, the goals of fiscal policy are different in different countries and in the same country in different situations. However, the objectives of fiscal policy are as follows: Optimum allocation of resources Full employment Price stability Equitable distribution of income and wealth Economic growth Describing …

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fiscal policy

Fiscal Policy: Definition, Tools, Methods, and Objectives

What is Fiscal Policy? Fiscal policy refers to a policy that is concerned with the effects of government expenditure taxation and public borrowing on output and employment. Fiscal policy is a policy concerning the receipts and expenditures of the government. It refers to the budgetary policy of the government. It operates through changes in government …

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Objectives of Monetary Policy

A Guide To The “6 Major Objectives of Monetary Policy”

Objectives of Monetary Policy The objectives of monetary policy may be different at different times and in different economic conditions. During the pre-Keynesian times, the monetary policy was the only macroeconomic policy and the objective was only price stability. But after the 1930s the role of monetary policy was drastically changed. Broadly speaking, the objectives …

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monetary policy

Monetary Policy: Definition, Tools, Types, and Objectives

What is Monetary Policy? Monetary policy is basically concerned with the monetary system of the country. Monetary policy refers to the policy measures undertaken by the Central Bank to influence the money supply as an investment for achieving the objectives of the general economic policy. Monetary policy helps in the achievement of such objectives as …

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business cycle

What is Business Cycle? Meaning, Guide To Its 4 Phases

What is Business Cycle? A business cycle or trade cycle is defined as an alternation of periods of good trade i.e. rising trends of economic variables and periods of bad trade i.e. falling trends of macroeconomic variables. Business conditions never remain unchanged. A business cycle refers to oscillations in aggregate economic activities, particularly in employment, …

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inflation condition

What is Inflation? Meaning, Types, Effects, and More

What is Inflation? Inflation refers to a persistent and appreciable rise in the general price level. It is a situation of continuously rising prices of commodities and factors of production resulted from the excess money supply. Different economists defined it in different ways. Some economists like Crowther, Gardner Ackley, Harry Johnson regarded inflation as a …

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classical theory of employment

A Guide To The “Classical Theory of Employment”

Classical Theory of Employment The classical theory of employment states that there is always full employment in a free capitalist closed economy in the long run. The Classical Theory of Employment was developed by the combined contribution of classical economists, such as Adam Smith, J.S. Mill, A.C. Pigou, Ricardo, etc. The theory is based on …

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Difficulties in Measurement of National Income

Difficulties in Measurement of National Income

Difficulties in Measurement of National Income Estimating national income is quite a complicated task. It is beset with difficulties of various kinds. These difficulties in the measurement of national income can be broadly classified into two categories: (a) conceptual difficulties, and (b) practical difficulties. While conceptual problems are of general nature and appear in almost …

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