Unemployment is not only bad for the economy due to the loss of goods and services. Describe some other reasons why unemployment has a negative effect on the economy
What will be an ideal response?
Not only does unemployment mean the economy is not producing at its potential, there are other social problems associated with unemployed. Research has found that higher rates of unemployment can lead to higher crime rates, greater political unrest, higher rates of depression, and other illnesses among individuals. High unemployment sets a negative mood for the entire nation.
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Lower real interest rates
a. tend to shift the consumption function upward. b. have no significant effect on consumption. c. tend to shift the consumption function downward. d. tend to move the consumer upward along the consumption function.
When the dollar appreciates, U.S
a. exports decrease, while imports increase. b. exports and imports decrease. c. exports and imports increase. d. exports increase, while imports decrease.