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 ▸

What is an oligopoly?


Define opportunity cost


Explain one benefit of international trade for UK consumers.


What are some disadvantages of using GDP as a measure of living standards?