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If people are unemployed, they don't have much money and so they won't spend as much. That means products aren't being sold so that does not help the economy. Cheaper products may come in from other countries that people can afford to buy and that will undermine the local businesses. People may turn to the black economy, further undermining legitimate companies and impacting on the amount of tax collected by the government. If companies don't make enough money, more people may become unemployed. A government will have to spend more on benefits, taking away from money that they could spend more productively elsewhere. So they are getting less tax and paying more out. There are many reasons like these that impact on an economy when there is high unemployment/
Wiki User
∙ 8y ago
Wiki User
∙ 12y agoEconomic growth and unemployment share an inverse relationship, this is as one rises the other falls.
Wiki User
∙ 12y agoIt makes some people lazy. I know people that just try to sit on their butt and just collect there pay. They think its hard trying to get a job now, all I have to say is use your time wisley
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Which economic indicator does not measure economic growth?
Unemployment rate
What indicators does not measure economic growth?
Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.
What are the main goal of macroeconomics?
To promote economic growth To manage unemployment to low levels To manage inflation to low levels
Match the economic indicator with its type of measurements?
Retail sales: Growth Growth Domestic Product: Activity Consumer Price Index: Inflation Unemployment Rate: Inactivity
Who makes economic decisions in a mixed economy and why?
The government makes all the decisions because the government does all the spending and taxation to provide jobs and services and he also influences on the economic growth
Which economic indicator does not measure economic growth?
Unemployment rate
What indicators does not measure economic growth?
Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.
What does a low rate of unemployment indicate?
24. A high unemployment rate indicates low economic growth. security. freedom. efficiency.
Is inadequate economic growth a cause of unemployment?
Where economic growth in an economy slows down, it's never a good thing. The employable population in any economy needs to have jobs available in the economy. Growth will do this, however, slow growth will not keep up with the number of people seeking jobs, thus creating unemployment.
What effect did economic reform have on Slovakia?
The outcome of the Slovak reforms is the major economic improvements achieved in a short period of time. Slovakia enjoyed solid economic growth of 6 percent in 2005 and managed to push registered unemployment down to 11.4 percent in 2005.
What are the first signs of economic growth for a country?
According to the Wise Greek website, the first signs of economic growth for a country are unemployment rates dropping and surplus amounts of products.
What are two features of sustainable economic growth?
Low and stable inflation rate. Low unemployment rate.
What is the likely result of deflation a. economic growth b. high unemployment c. rising prices d. high tax rates?
b. high unemployment
Macro environment forces?
In business, macro environmental forces include inflation, currency exchange rates, GDP growth and other factors. They also include unemployment and overall economic growth. This includes many factors that effect the environment on a larger scale.
What are the main goal of macroeconomics?
To promote economic growth To manage unemployment to low levels To manage inflation to low levels
Match the economic indicator with its type of measurements?
Retail sales: Growth Growth Domestic Product: Activity Consumer Price Index: Inflation Unemployment Rate: Inactivity
Who makes economic in a mixed economy and why?
The government makes all the decisions because the government does all the spending and taxation to provide jobs and services and he also influences on the economic growth
