Title Unit 6 Macroeconomics ✅

MACROECONOMICS SECOND YEAR M.A. ECONOMICS
Concepts, Economic Disturbances, Econometric Models for Policy making, lags in the Effects of Monetary and fiscal Policies, Activist policy , Rules vs. Discretions UNIT- VI MACRO STABILIZATION
♥ Concept of Macroeconomic Stabilization ♥ Stabilization: Simply stabilization refers to the system of preventing the extremes of ups and downs in the economy. It also relate with preventing over and under employment in the economy. Hence stabilization is a way in which there are not any disturbances and difficulties in order to achieve desired growth and targets. ♥ Stabilization policy: A stabilization policy is a package or set of measures introduced to stabilize the economy cite to stabilize the system of production, distribution and consumption) or the financial system of the economy that is in difficult situation stabilization policies are economic policies undertaken by government to counteract Act in opposition to) business cycle fluctuations and prevent high rate of unemployment and inflation stabilization policy is also known as countercyclical policy. It is combination of fiscal policy and monetary policy.
♥ Objectives of stabilization: Following are the major objectives of stabilization in an economy: 1. Encouraging free competitive enterprises with minimum role of government? To promote free market economy. 2. To utilize productive resources efficiently. (Natural resources Human resources and financial resources) 3. To prevent excessive economic fluctuations for long-term economic growth /To enhance high economic growth. 4. Achieve targeted economic growth through appropriate stabilization policy (i.e., fiscal and monetary policy). Therefore fiscal policy, monetary policy and income policy are means to achieve strong stabilization.