Dear Parents

Macro-economics is the study of how the national economy works and the interaction between economic growth and national income, employment, etc. Government macroeconomics objectives are difficult to be achieve. In some cases policy aims might conflict. For example, setting the minimum wage too high will increase costs, forcing employers to cut jobs. ~ Naa Anang-La

We understood what demand-side and supply-side policies are. It is a good idea to implement such policies but governments need to keep in mind that conflicts can erupt from the implementation of these policies. For example, increasing disposable income may lead market prices and profits to rise, resulting in high inflation. ~Nassira A-Dikeni

We now have a deeper understanding on government policies, specifically demand-side and supply-side policies. From our group discussions, a discovery was made that even though these objectives seems good, it implementations may come with challenges. Example, Crowding-out public sector may cripple the private sector in accessing credit. ~ Elorm Godzi

Out of the group discussions we gained detailed knowledge and understanding about how there is always a conflict to each policy. Using our collaboration skills, the group analysed some selected policies and its effect on the macro economy. For example, increasing interest rates may result in lower output and more unemployment. ~Quophi Yelbert

We learnt that the government of every country really does a lot to improve the lives of its citizens. However, in the process of implementing some policies, it rather creates other difficulties for the same economy. For example, economic growth may bring about negative externalities. ~Awurabena Ahenkorah

Any government policy will create conflict. Therefore, governments must implement the Tinbergen’s rule which says that to every policy objective there must be a separate policy instrument. Governments should also put certain structures in place to make sure the government is stable enough to implement that policy and they should try and make sure the conflict effects are minimised. ~Apewe Chigabatia