Question

What happens in the economic cycle if the public sector raise the child benefit payouts? Explain...

What happens in the economic cycle if the public sector raise the child benefit payouts? Explain the future events broadly by explaining how all actors are affected.

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Answer #1

If the public sector raise the child benefit payouts, then many of the people are demotivated with it and get to move to other places to work. This can get to cause a gap in the work and reduce the production activity with which the recession phase can get triggered on the whole. If this recession phase is triggered than the economy falls in the international market where the value of the currency also falls with which the company experiences poverty increase etc.

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