Macroeconomic stability refers to a condition in which an economy experiences steady growth, low inflation, and low unemployment. This stability is essential for fostering a predictable environment for businesses and consumers, allowing for better planning and investment decisions. Key indicators of macroeconomic stability include the Gross Domestic Product (GDP), inflation rates, and employment levels.
Governments and central banks often implement policies to maintain macroeconomic stability. These may include adjusting interest rates, regulating money supply, and using fiscal policies like taxation and government spending. Achieving this stability helps to prevent economic crises and promotes overall economic health and prosperity.