Explain two benefits to the government that falling unemployment provides.
- There will be less unemployment benefits paid out by the government allowing them to spend this money elsewhere, such as improving infrastructure.
2. Less people unemployed means the government is able to collect more income tax, leading to a reduction of the budget deficit.
GB
Related Economics GCSE answers
All answers ▸What is excess supply?
What is the effect of a rise in Interest rate on the level of growth in the economy?
Evaluate one reason why trade may be beneficial for an economy (5 marks)
Explain three possible reasons for growth in the value of an economy’s exports of goods.