Macroeconomic Aims of a Government

The government and policymakers of a country intervenes in the economy in order to achieve economic growth, price stability, and low rate of unemployment. First and foremost, economic growth can be defined as an increase in the country's output over a period of time. This means there is an increment in her productive capacity hence a rise in national income. A high economic growth is desirable as it represents an improvement in the material standard …

…government aims to achieve equilibrium in the balance of payment, especially the current account. A deficit in the current account drains the savings and reserve of a country significantly, leading to a chain effect of higher national debt and burden to future generations. In view of the above objectives, the government is needed to regulate and rectify situations. Therefore, the conclusion can be arrived that government intervention is fundamental to every economies in the world.