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What type of unemployment is not a natural result of a market economy?
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∙ 12y ago
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Wiki User
∙ 12y ago
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How does an individual benefit from a market economy?
With a market economy, individual can get lower price and much more choice which is a direct result of competition.
Was market economy a result of the commercial revolution in Europe?
Yes
What are the effects of unemployment on Michigan's economy?
the effects of unemployment on Michigan's economy may result in longer unemployment for the state. nearly half of michigan's unemployed in 2010 were out of jobs for over 6 months which seemed to be at an all-time high for the state compared to the past recessions
Which system developed as a result of commercial revolution in Europe?
Market economy
Which system developed as a result of the commercial revolution in europe?
Market economy
Do monetarists argue that the Natural rate of unemployment can be reduced by macroeconomic policies designed to stimulating aggregated demand?
They do, but inflation will result, the monetarist view of the natural rate is that it is the non accelerating inflation rate of unemployment (NAIRU) to move below this will result in high inflation and is therefore not worth the benefit of the reduced unemployment.
How does cyclical unemployment hurt the economy?
Cyclical unemployment is the result of a boom and bust economy. When industry is good businesses expand and hire more people and then when the economy drops and the businesses close there is a dramatic rise in unemployment.
How can government spending trigger a chain of events that helps to improve the economy?
This theory comes from John Maynard Keynes's theories on the economy. High government spending (AKA running a budget deficit) means that there is an increased demand in the market for business output, which will result in increased employment, which will result in higher incomes, which will result in increased consumer spending, which well then result in even more demand. This practice is theoretically most useful to bring an economy out of a recession and reverse high unemployment.
Does US have a command economy?
No, the US has a market economy a result of its capitalist policies, command economies can be found in communist countries.
What happened to the economy as a result of the stock market crash?
The money from the government had dramatically decreased
What is the result of the government guiding the supply of money in the economy through regulation of banking interest rates?
Reduced inflation and unemployment rates
Why is unemployment rate important?
The unemployment rate can be a good indication of the economy's state. High employment rates show a lack in the growth of the economy and vice versa. Also, high levels of unemployment result in a decrease in general consumption (people have less money to spend as they are searching for jobs) and this will contribute to slow business growth.
