ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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reduction in output levels in the economy
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increase in social cost like crime
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increase in GDP
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increase need for state support for welfare payments
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Detailed explanation-1: -In general accepted theory, when the growth rate of a country’s economy increases, it is expected that employment will increase and the unemployment rate will decrease.
Detailed explanation-2: -A high unemployment rate implies a high level of GDP. A discouraged worker is another name for the unemployed. Frictional and structural unemployment are part of the natural rate of unemployment. If the CPI for year 1 is 150 and the CPI for year 2 is 165, the inflation rate is 10%.
Detailed explanation-3: -High unemployment means that a nation’s resources are being underutilized. It also poses great economic, psychological, and social costs on unemployed individuals, as well as their families and their communities. It is associated with higher rates of depression, suicide, domestic violence, and lack of social cohesion.