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**FIVE MACROECONOMIC OBJECTIVES FROM THE CONVENTIONAL PERSPECTIVE AND…
**FIVE MACROECONOMIC OBJECTIVES FROM THE CONVENTIONAL PERSPECTIVE AND ISLAMIC PERSPECTIVE
To achieve full employment
level of employment rate
~ no existence of cylical
The country wishes to be as efficient as possible and thus to have the maximum of workers
The unemployment rate is calculated to establish the level of unemployment in a country.
To achieve price stability
Economists are interested in what is happening to the prices of goods and services
They want to know what is happening to inflation. How do we calculate the inflation rate?
Central banks would like to keep the growth of the rate at which prices increase at low rates
To achieve economic growth
determined to establish a country's total production of goods and services. (GDP)
To achieve an equitable distribution of income
Meaning, how is income distributed amongst individuals or households.
Income equality is measured by the Gini coefficient and the Lorenz curve.
To achieve equilibrium in the foreign sector
This concerns a country's economic links with other countries
A country keeps record of its transactions, the amount of exports, imports, investment, savings and so on.
Islamic perspective
Equitable distribution of income
Happiness is not derived from the possesion of material goods, but from contentment and gratitude
Islam insists on a powerful built in income redistribution mechanism
Social justice
There is no difference between the rich and the poor, between the high and the low.
Aims to achieve spiritual salvation to human happiness
Universal Education
Acquisition of knowledge is obligatory in Islam
The government must subsidize or provide free education to ensure that education is available for all
Maximization of employment generation
not to attain full employment at the cost of economic efficiency
ensuring sufficient employment also includes the need to provide educational and training opportunities in specific fields
Optimal rate of economic growth
human capital and material capital
Man is central to all economic activities