hii attached my assignment its need to add some thing on itthis is my note:1-its need introduction and summery 2- Point Num: 1 the answer was too short and need more Explanation 3- Point Num: 3 ((...

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Macroeconomic Project
ID Students Name
201520540 Mariam AlMansoori
201520422 Noura AlMarzooqi
201610043
Noura AlAhmadi
000000000 Shreefa
Dr. Shatha Rashid
Macroeconomic
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Introduction
The paper discusses about the external macroeconomic factors that directly affect the economic
health of UAE. All the macroeconomic policies of the country have cause and effect over various
parameters such as unemployment rate, inflation rate and the per capita income of the people.
Due to indulgence in the heavy investments into the public infrastructure sector, there is
expectation of positive outcome as UAE is backed by the major industrial sectors in the
economy. The emerging status of the UAE market leads to generation of regional centre of
financial hub which boosts the liquidity levels. It attracts high foreign investment which
considers listing to be the primary source of goodwill for the industrial sector. In coming times, it
is expected that the next growth phase of the country will be claimed from the sectors such as
eal estate, maritime, retail, capital, maritime and transport, etc.
I. Describe the main objectives of macroeconomic policy.
Macroeconomic policies are concerned with the overall position and scenario of the economy
ather than analysing the growth pattern and behaviour of an individual business unit.
Macroeconomic policy implications are more inclined towards the success pattern and growth of
the economy in terms of GDP and changes in the trend of other important macroeconomic
measures. It has been established by the modern policy makers that macroeconomic policies to
e implemented over the economy should have clear goals and objectives so that problems of
growth and business cycle can be removed in a comprehend manner from the roots. Following
are the few objectives of the modern macroeconomic policies which should be attained through
various macroeconomic tools.
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1. Stable and sustainable economic growth and development
It means the growth and performance of the economy should be sustainable in the sense that
national income can keep on growing viably in the long run. Also, the development of the
economy should be in such a way that other macroeconomic issues can also be resolved in a
significant manner. However, such desirable goals of growth are different for developing and
developed economies because the priorities and primary goals are not same for both. For
instance, developing economies are more concerned about population longevity and maintaining
the standard of living along with longevity of population age.
2. Stability in prices
When the inflation rate is according to the target rate of monetary policy which is estimated to be
around 2% per annum, there is stability in the prices and a symbol of growth for the economy.
3. Employment level – When people work for earning their living on voluntary basis
productively, it is said to be employed and attaining full employment is the goal of the
macroeconomic policies.
4. Maintaining positive balance of payments with its trading partners helps in establishing the
trading relations and earning foreign exchange through balance of payments at world level.
5. Environmental concerns – Environment being an important asset for the country should not be
misused and overused in any way and for this macroeconomic policies are constructed to protect
and regenerate the renewable resources by the government agencies.
6. Reducing the income gap between the rich and poor should be reduced in a positive form so
that it does not kill the incentive of the educated and capable people to work hard and generate
more income.
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7. Sound public finance structure – Government spending is done to reduce the spending by the
consumers and capital formation is done to generate higher aggregate demand through
productive activities. Controlling public debt and maintaining government expenditure at
adequate level are the prime concerns of macroeconomic policy matters (Macroeconomic policy
objectives, 2016).
2. Measure the United Arab Emirates National Output and National Income and
understand cures of inflation and...