Low unemployment is usually a good thing because:

1. It helps the government achieve one of their main macro-economic objectives.

2. It helps economic growth as consumers can spend more. Since consumer spending is a component of aggregate demand, the AD curve shifts to the right.

3. Higher employment means more tax money for the governments. As above, government spending is a component of AD so... more

Will's profile picture
Will Frankfurt
·

9 students helped

·

3 years ago


Similar questions in Economics

English

Asked by Cristina

What is a feminine rhyme?

English

Asked by Cristina

What is a masculine rhyme?

French

Asked by Wenli

This is my questions for you

Tutors who could help with undefined

Tutors who could help with undefined