unemployment is due to supply side factors, appropriate policies to reduce our employment help to achieve other macroeconomic objectives as well. contribution of supply side policies to reducing unemployment.

Extract C: Confit between objectives? MUs
Objectives of governments’ macroeconomic policy include economic growth, price
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stability, unemployment and the balance of payments. However, the importance ev attached to each objective is likely to change over time according to priorities and the problems the country is experiencing. For example, as countries develop and incomes rise, people may place more importance on the environment.
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Countries with relatively low income per head are most likely to focus on policies to increase economic growth, while many high-income countries, at least for many years, have considered keeping inflation low and stable to be the key to success.
This is based on the view that low inflation is necessary to achieve sustained, stable economic growth and low unemployment.
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However, there is also the possibility of trade-offs arising, at least in the short run, when attempting to achieve different macroeconomic objectives, for example low inflation and economic growth. Although Zambia more than halved their inflation rate between 2009 and 2017, from 13.4% to 6.6%, their growth rate also fell from 9.2% to 3.4%.
The global recession caused widespread cyclical unemployment, which resulted in many developed countries running much larger budget deficits. Many people feared that the subsequent cuts in government spending to reduce the deficits would lead to aggregate demand falling. However, record low interest rates, supported by unconventional measures, such as quantitative easing, helped to maintain spending. This expansionary monetary policy led some economists to predict an unwelcome rise in inflation but this has not happened.
trictional structura
Unemployment, whether short-term or long-term, has a number of causes. If the unemployment is due to supply-side factors, appropriate policies to reduce unemployment may help the government to achieve its other macroeconomic objectives as well, including lower inflation.