To achieve this objective it is crucial that stable growth is maintained, which therefore does not encourage short-term economic growth that cannot be sustained. Regarding unemployment, its reduction is another important macroeconomic objective, since unemployment benefits are drying up public revenues, but they also represent a waste of human resources. (Sloman, Wride, 2009: 388) Another issue that affects macroeconomics is inflation. This term refers to rising prices throughout the economy. The inflation rate is the measure of the annualized percentage change in a general price index over time. (Mankiw 2002: 22–32) A high inflation rate will negatively affect economic decision making and cause businesses to be more hesitant when it comes to investment decisions and wage/price rates. Last but not least, is the balance of payments and exchange rate, which the primary objective of the government is to avoid