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 ▸Explain one externality that could come about as a result of a factory producing clothes.
Explain one consequence of a more globalised world?
What are the short term pricing differences in the different market structures?
Which factors affect supply and demand?