02 Oct Economics
75777Please write according to the information below.
– In April 2019, the U.S. unemployment rate fell to 3.6 percent, its lowest level in almost 50 years. In Texas, the unemployment rate was 3.4 percent in June 2019, its lowest level since individual state data began being kept in 1976. Unemployment rates this low are often viewed as being very good for the economy, so explain how low unemployment rates benefit the economy in terms of the following:
* productivity and GDP growth
* wages and wage growth
* consumer confidence
* labor supply & demand
* entitlement spending (make sure you understand the term “entitlement spending”) – – Unemployment rates this low can also be viewed as being detrimental to the economy, so explain how low unemployment rates may also damage the economy in terms of the following:
* productivity and GDP growth
* employee loyalty
* potential inflation
* labor supply & demand
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