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What is the result of high unemployment?
A decrease in consumer spending.
What Factors affect consumer spending?
The factors that affect consumer spending are: Size of Income, Future Expenditures, and Social Influences.
What are the statistics on unemployment growth consumer spending and interest rate?
zac efron
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
What economic factors that influence the personal financial planning?
Consumer Prices; Consumer Spending; Interest Rates; Unemployment; DOW JONES Average index changes, etc
How might psychological factors affect the business cycle?
optimism can lead to increased consumer spending and greater business productivity.Pessimism can make people more cautious,reducing consumer spending.
Why does wealth affect consumer spending?
If you have more then you can spend more unless you chose to save it
Can cyclical unemployment ever have a negative impact on the economy?
Yes, cyclical unemployment can have a negative impact on the economy by reducing consumer spending, lowering overall economic output, and potentially leading to a recession.
Cite at least two tables or graphs to support your conclusion?
1 unemployment was very high 2. Consumer spending was very low
When the economy goes into a recession real GDP and unemployment?
When the economy enters a recession, real GDP typically declines as consumer spending and business investment decrease, leading to reduced economic activity. As a result, unemployment tends to rise because companies may lay off workers or halt hiring in response to lower demand for goods and services. This cycle can create a feedback loop, where rising unemployment further depresses consumer spending, exacerbating the recession.
List some adverse affect of unemployment?
* Unhappy people * Decrease in human resource leading to a decrease in production * Decrease in spending
How does unemployment affect inflation?
Unemployment and inflation are often inversely related, a relationship described by the Phillips Curve. When unemployment is low, demand for goods and services tends to rise, leading to higher prices and inflation. Conversely, high unemployment can dampen consumer spending, reducing demand and potentially leading to lower inflation or deflation. However, this relationship can vary due to factors like supply shocks or changes in monetary policy, making it more complex in practice.
