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From course:

Economics A Level (DONEEEEEEE)

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Question:

Overall, what are the Costs and Consequences of Unemployment?

Author: eric_galvao



Answer:

-Unemployed have Lower Incomes. This reduces Demand [AD] and Firms Profits [Negative Multiplier Effect] -Less Income Tax for Governments [Budget Deficit] and Less Consumption means less Indirect Tax [VAT] Government spends more on Unemployment Benefits -Areas with High Unemployment leads to Crime and Health Problems [Negative Externality] -Workers who have Lacked a job for a Long time means their will probably Never find a Job as they have little, Outdated Skills


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