All of the economic indicators listed above are very important, of course. Nonetheless, the government has the power not just to manage, but 'to manage all of them the best manner'. Since defining priority is basic to maximise the utility of scarce resources, prioritizing means electing an order to manage. So, tell us, from 1 to 5, what order should the government elect?
The answer to your question probably depends on what outcome respondents value. To that end, I will address it from an environmental studies/environmental science perspective consistent with my research on extinction and my concerns about biodiversity and ecosystem function. From an environmental impact perspective (specifically one that values the preservation of biodiversity and habitat), a focus on whichever of these factors would most encourage sustainable economies strikes me as most important. In considering an example I discuss with my students, a sustainability perspective would place a higher valuation on a fishery or lumbering operation that can provide full employment for a smaller number of people over the long term (and preferably in perpetuity) over one that can provide rapid growth in employment and/or rapid increase in financial returns for a shorter period of time before becoming insolvent. For that reason, existing metrics for assessing economic growth may be inconsistent with sustainable practices. Nonetheless, I would suggest the following answer:
1. GDP Growth (on the understanding that we might need to measure it differently to account for sustainability or somehow prioritize some limits on GDP growth as a goal)
2. Productivity
3. Unemployment
4. Inflation
5. Interest Rates
The answer to the question might also depend on whether we're thinking about the effects the proposed prioritization would have over the short, medium, or long term. I am considering the question from a long-term perspective.
As I am not an economist, others may be better able to apply my logic to the example to offer a better answer more consistent with my goal, and, if so, I would appreciate your insights.
I think that governments should consider to minimize corruptions in its activities. If transparency increases, the works will be more constructive and governments will be able to uplift indicators of development.
Govt should give priority to rate of interest and at the same time it should check inflation too. By lowering rate of interest, investment will be encouraged which in return will give rise to employment opportunities and productivity and GDP will automatically increase.
The government for management can immediately use all the optimization parameters that you listed. Set restrictions on them. Then using a mathematical tool, for example, Harrington's desirability functions can be converted to a dimensionless scale (d), which allows choosing the optimal project for investment, for example, from the generalized optimization criterion (geometric mean, D). The methodology for such an assessment is given in the article: Aidar S. Puryaev, 2015. The Mathematical Apparatus of Compromise of Efficiency Estimation of Investment Projects. International Business Management, 9: 856-861. http://medwelljournals.com/abstract/?doi=ibm.2015.856.861.
A government exercises fiscal and monetary policy (if not in a currency union) according to its priority on inflation and unemployment rate. If economic policy -a combination of fiscal and monetary policy- is more of an expansionary type, then a priority is given on fighting unemployment. If it is given on fighting inflation, then the policy is of a contractionary type (relatively high interests rates). Productivity is more a micro matter.
Thank you very much for the kind insights, fellow scientists.
Some of the most important contemporary economists of the world nowadays believe that Unemployment is the one. It´s because fighting against unemployment, one would be naturally fighting against slow growing ad deflation, the two other 'evils'.
All the best for all of you.
Prof. A. Hess
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