What are the primary objectives of economic policy?

The primary objectives of economic policy are centered on promoting economic growth, reducing unemployment, and stabilizing prices. These goals are essential for achieving a healthy and sustainable economy.

Promoting economic growth involves creating an environment where businesses can thrive, which in turn leads to more jobs and higher income levels for individuals. Economic growth is often measured by the increase in a country's Gross Domestic Product (GDP), indicating the overall economic performance.

Reducing unemployment is crucial because high unemployment levels can lead to social issues and diminished consumer spending, which negatively impacts economic growth. Economic policies often aim to create job opportunities through various means, such as investing in infrastructure, education, or technology innovation.

Stabilizing prices is another key objective, as volatile prices can create uncertainty for consumers and businesses alike. When prices are stable, it allows for better planning and investment decisions, leading to a more predictable economic environment. Central banks, for example, monitor inflation rates and implement policies to control them to maintain price stability.

While the other choices may reflect certain aspects of economic considerations, they do not encompass the broader and more fundamental goals of economic policy that aim to enhance overall economic welfare.