How Does A Drop In The Unemployment Rate Affect The Economy?

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Anonymous answered
Lower unemployment means less texes being payed and less money being spent. With less tax payed, governments are forced to cut back government spending to balance out the budget. Unemployment also leads to further unemployment as business earn less money and therefore have to cut back further on more employees
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Anonymous answered
Unemployment = decreased income = decreased spending on goods = less money cycling = less money being made = more job cuts

All together this means a spiral down the tubes for the economy...

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