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 ▸

t=−3 , find t^2−2t−1


Explain three possible reasons for growth in the value of an economy’s exports of goods.


Why do price of exchange rates increase when interest rates increase? What does it mean that a currency is strong?


Define the term PPF and illustrate it.