Question

Pick one of the following to focus how this idea or issue is reflective of the economy.. min of 200 words please & if your use sources please write them as well

(Only pick one)

•Unemployment Rate

• inflation

•function of money

•invisible hand

Answer 1

Unemployment rate:
Unemployment rate has some effects on the economy. It affects people who are already employed. When people are unemployed , they lose their purchasing power and cant buy goods and services which leads to further unemployment and economic decline. When a lot of people lose their jobs and are unemployed, the whole country is affected by it. The country loses income and production decreases, spending also decreases. Hence it can have a major say in the economy of a nation and can also indicate the movement of economy. When unemployment increases it shows a rise in weak economy. Hence the nations money supply needs to be increased further.