Question:
Overall, what are the Costs and Consequences of Unemployment?
Author: eric_galvaoAnswer:
-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-Workers who have Lacked a job for a Long time means their will probably Never find a Job as they have little, Outdated Skills
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