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Why can success of economic policy not be measured only by a rise in national income?

Answer and explanation

Correct answer: Because employment, price stability, income distribution and social welfare are also important

National income measures the value of economic activity, but it does not fully reveal who receives the income, whether employment is adequate, whether prices are stable, or whether environmental and social conditions are improving. A sound macroeconomic policy therefore balances growth with employment, price stability, equity and welfare. Hence, option A is correct.

Related tags

National IncomeEconomic PolicyEmploymentPrice StabilityWelfareGdp And WelfareNational Income And Related AggregatesEconomics

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