0
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/
What else can I help you with?
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
How does the exchange rate affect the five macroeconomic objectives?
The exchange rate influences the five macroeconomic objectives—economic growth, unemployment, inflation, and balance of payments—by affecting trade competitiveness and capital flows. A weaker currency can boost exports by making them cheaper for foreign buyers, potentially stimulating economic growth and reducing unemployment. Conversely, it can increase import costs, leading to inflation. Additionally, fluctuations in exchange rates can impact foreign investment and the balance of payments, as they affect the value of international transactions.
Match the economic indicator with its type of measurements?
Retail sales: Growth Growth Domestic Product: Activity Consumer Price Index: Inflation Unemployment Rate: Inactivity
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.
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.
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 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 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 two features of sustainable economic growth?
Low and stable inflation rate. Low unemployment rate.
What happened to the unemployment rate from 1990 to 1998?
The unemployment rate declined from 1990 to 1998. Factors like economic growth, job creation, and government policies can influence changes in the unemployment rate over time.
What is the cause and effect of employment?
The cause of employment often stems from economic demand for goods and services, leading businesses to hire workers to meet that demand. The effect of employment includes increased income for individuals, which can boost consumer spending and overall economic growth. Additionally, employment can contribute to social stability and personal fulfillment, while unemployment can lead to economic downturns and social issues.
What are the main goal of macroeconomics?
To promote economic growth To manage unemployment to low levels To manage inflation to low levels
