ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prices that remain the same
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A high unemployment rate
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Increasing GDP
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Increase in spending power
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Detailed explanation-1: -When the economy is weak, companies go out of business or make cutbacks, people lose their jobs, and the unemployment rate goes up.
Detailed explanation-2: -Unemployment adversely affects the disposable income of families, erodes purchasing power, diminishes employee morale, and reduces an economy’s output.
Detailed explanation-3: -What Are the Effects of a Sluggish Economy? Although there is no formal definition for a sluggish economy, the term is often associated with falling consumption, low GDP growth, or rising unemployment. Due to a heightened sense of economic precarity, people may reduce their consumption and increase their savings.
Detailed explanation-4: -High unemployment means the unemployment rate in a community is, for the most recent 24‐month period for which data is available, at least 1% greater than the national average unemployment rate.