The main objectives of macroeconomics are; to achieve Full Employment – In this economic aggregate demand and total supply should always be in optimum level to maintain the equilibrium. And to prevent from unemployment – In this world economy we are always facing some kind of crisis. So that if there is a crisis we will be able to overcome it and recover quickly. This is what is called equilibrium of demand and supply.
The aim of economic equilibrium is to maintain a steady rate of growth in the economic growth. There are two basic theories on how we can achieve these two objectives. One theory is known as Phillips Curve, which is the other is called the General Theory of Economic Equilibrium. The first theory is known as “Monetarist theory” which is the theory which is based on the principle of demand and supply in the economy. The second theory is known as “Neoclassical theory” which is the theory which is based on the principle of supply and demand. These two theories have been proven to work efficiently in the economy, but what is missing is what needs to be done to attain both of them. In order to achieve both of these objectives, we need to change the system and make it different and unique from the current system.
The objectives of macroeconomics are not achieved by just changing the present system, rather we need to change the existing system and change the system which does not work. The current system does not work because the current system of production has been set up and established over the years. We have been using this production system for the past several years, which is why we are still having our economic problems. We have been producing goods in such an inefficient manner that there are so many unemployed in the market.
We have to bring in a better production system, one which will enable us to increase the production, produce more goods and therefore create jobs and increase the output of the present system. In order to do this, the present production system has to be changed and made to be different and unique. The present production system has been set up over the years in such a way that we have been producing goods in such a manner that there is no surplus of goods at any one time. and there are no excess of supplies of goods. This surplus of goods is actually a problem, because the whole economy is being utilized.
This surplus of goods is a big issue because there is no profit that can be made out of these excess goods. So the question is, why are there no profits? There are no profits because there is no excess supply.
Therefore there will be no profit when the production system is set up this way. It is very important for us to change the production system of . . . . . . the present system so that we can create a good balance and a good equilibrium in our economy. The solution is to go back to the basics of the production. The best way to create balance is by utilizing the natural forces of nature. The production systems which are used in the production of goods need to be set up in such a way that the production is at its peak level in a shorter time period.