Explain two benefits to the government that falling unemployment provides.

  1. 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 ▸

Define a monopoly and explain its positive and negative impacts on the economy.


Explain what is meant by ‘price elasticity of demand’


Explain the difference between direct and indirect costs.


What kind of effect would a national minimum wage have, is it positive or negative ?