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Explain the benefits to a government from a fall in unemployment.

Quick Answer:

Due to higher levels of income and spending in the economy, tax revenue will rise .This will help to finance government spending in other areas such as education and healthcare .

A fall in unemployment will also reduce the financial burden and opportunity cost for the government, as spending on welfare benefits falls

This may also help the government achieve its macroeconomic objectives such as raising GDP and achieve full employment

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