GROWTH DEVELOPMENT CHILD
GROWTH AND DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unemployment is likely to fall
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Prices are likely to fall
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Demand is likely to fall
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Imports are likely to fall
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Detailed explanation-1: -An economic boom is an often-short-lived period of rapid growth of real GDP resulting in lower unemployment, accelerating inflation rate and rising asset prices. A boom occurs when real GDP is expanding much faster than the estimated trend rate of growth and this can lead macroeconomic overheating.
Detailed explanation-2: -With lower demand for goods and services, firms start laying off workers and at the same time refrain from raising prices. So unemployment rises and inflation falls during recessions.
Detailed explanation-3: -Unemployment is caused by various reasons that come from both the demand side, or employer, and the supply side, or the worker. Demand-side reductions may be caused by high interest rates, global recession, and financial crisis. From the supply side, frictional unemployment and structural employment play a great role.
Detailed explanation-4: -Increase in unemployment indicates a depressed economy. If people cannot be used as resource they naturally appear as a liability to the economy.