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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why does Unemployment prove to be a Cost to the Economy? -Why does Government want to Track Unemployment figures?

Author: eric_galvao



Answer:

-High Rate of Unemployment can make an Economy seem Ill -Unemployment leads to Lower Incomes and Less Spending, making Firms affected too by Cutting Production -Unemployment means there is Unused Labour, so Fewer Goods and Services can be Made [PPF] -Government has more Costs in the form of Welfare Benefits, and less Revenue as there is Less Tax


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