Consequences of Rising Unemployment on Government's Finances
Question
Analyse the consequences of rising unemployment on a government’s spending and tax revenue.
Category:
Unemployment
Frequently asked question
Preview Answer
I. 🍃Introduction
- Explanation of the topic
- Importance of the issue
II. Pressure on the government budget
- Reasons for the pressure
- Impact on the government budget
III. Tax revenue
- Direct taxes
- Indirect taxes
- Impact on tax revenue
IV. Expenditure on unemployment benefits
- Reasons for the increase
- Impact on the government budget
V. Spending in other areas
- Healthcare
- Education
- Impact on the government budget
VI. Opportunity cost
- Explanation of opportunity cost
- Impact on the government budget
VII. Increasing total demand
- Reasons for increasing total demand
- Impact on the government budget
VIII. Disincentive to work and enterprise
- Explanation of disincentive
- Impact on the government budget
IX. 👉Conclusion
- Summary of the main points
- Implications for the government budget
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