The Three Domestic Macroeconomic Goals

What this note covers

1. The three goals at a glance — and why they exist
2. Goal 1 — Strong and sustainable economic growth
3. Goal 2 — Low and stable inflation (price stability)
4. Goal 3 — Full employment
5. Worked application — benchmarking the data and building the AD chain
6. How the goals interact — and what is at stake for living standards

6 sections · 14 key terms & formulas · 7 common mistakes