Question

carefully discuss two major macroeconomic problems of unemployment and two major macroeconomic problems of inflation in...

carefully discuss two major macroeconomic problems of unemployment and two major macroeconomic problems of inflation in an economy

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Answer #1

Answer : Two major macro economic problems related to Unemployment are:

  • Inefficient use of resources - It means that the resources are not utilised as there is unemployment in the country.
  • Less tax Revenue and higher government borrowings . It means that government has collected less tax revenue from the people and spend there money on the living of unemployment people.
  • Loss of human capital as well as income for Unemployed people.

Two major macro economic problems related to Inflation are:

  • Potential fall in real income of the consumer as well as fall in the real value of the money .
  • Declining in the competition in the market place.
  • Less investment portfolio existed with Inflation in an economy.
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