We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Low Production and High Unemployment - Essay Example

Comments (0)
Summary
Low Production and High Unemployment A country is said to be in an economic equilibrium if there exists no external forces causing disruption, the quantities demanded, and quantities supplied are equal. In the short run, economic equilibrium is achieved via price mechanism of demand and supply…
Download full paper
GRAB THE BEST PAPER
Low Production and High Unemployment
Read TextPreview

Extract of sample
"Low Production and High Unemployment"

Download file to see previous pages A change in either the demand or the supply will cause a similar shift of the other. However, for an economy to experience sustained economic growth and equilibrium, it must step up its factors of production such as labour, capital, and land. Several economic indicators depict the state of an economy and the stage (Frenkel, Razin 29). The Growth Domestic Product (GDP) is a total market value of goods, and services produced and consumed, investments, minus government spending plus the exports minus the imports. A GDP of a country depicts what is happening now in an economy. Rises in the GDP depicting a rise in the economy while a drop in the GDP depicting a recession. In this scenario, country A has a RGDP, which means that its GDP has fallen. Its economy has shrunk, by the amount of the GDP drop. A Second indicator of an economy is the rate of unemployment that describes an economy after it happens. An increase in the rate of unemployment depicts a lagging economy. A country is said to be in a long run economic equilibrium when no firm in the industry wants to leave or enter the market. In this state, no existing firms make losses and those entering the market make losses. Every firm produces at the efficient cost of production and the maximum profit they can make is zero. This means that price is equivalent to average cost of production (Osborne Web). ...
In country A, high levels of unemployment depict a recession. Country A is not in an equilibrium state, meaning that it has to undertake some fiscal and monetary policies to take it to this level. A fiscal policy is a tool used by the branches of government via either spending or taxes to attain a desired change. It is an act done with a conscious mind and geared towards effectiveness and efficiency. For country A that is in a recessionary period, imposing taxes will make the situation worse. Therefore, first, country A will have to increase government spending in the areas it deems fit. This king of fiscal policy is called expansionary that increases the government spending and decreases the taxes. This will increase the government budget deficit to increase and lead the country to a long-run equilibrium. According to Keynes, a government can achieve a real GDP every year through market mechanisms where it influences prices and wages, which they assume to be flexible. They believed that in a recessional economy one should not wait for the prices to go down but instead an expansionary fiscal policy can be used. The government should ensure that its spending is higher than the current tax receipts. This way the level of unemployment will fall as the unemployed persons get to work in the government projects increasing their purchasing power. Secondly, the government can engage in purchasing of bonds to release more fund to the corporate and to individuals. As people gain purchasing power, they will invest in various categories of businesses or even purchase goods increasing demand. Price levels will go up, employment levels going up and eventually raise the RGDP. Thirdly, to achieve a long run ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Current Economic Situation Marked by High Unemployment and Low Inflation
This essay gives an explanation of phenomenon of the contemporary economic trends that appeared in the Western Economies that witnessed existence of both high unemployment and high inflation at one and the same time. The researcher also the salient factors as well as requisite monetary and fiscal measures.
3 Pages(750 words)Essay
High-level and Low-level Languages
According to the paper the programming languages that are very similar to machine code are acknowledged as low-level programming languages. In these languages the program instructions are written in binary form. Low-level programming languages offer the programmer a high level control over hardware.
4 Pages(1000 words)Essay
Macroeconomics in Unemployment
Countries that have a high rate of unemployment are said to under utilize their resources. As the world’s population grows, job opportunities continue to shrink. This situation is getting worse by the day, as countries that have demonstrated their ability to eradicate unemployment have fallen into it again.
6 Pages(1500 words)Essay
Unemployment in Macroeconomic Theory
This essay focuses on the theoretic description of the types of unemployment in macroeconomics, while identifying main causes of each of these types. The main types identified are cyclic, voluntary, seasonal, frictional and structural unemployment. There are measures that must be put in place in order to solve each of the type.
6 Pages(1500 words)Essay
Unemployment in the United Kingdom
An example of frictional unemployment is search unemployment which occurs when workers do not take the first job they are offered and thus are "needlessly unemployed".On the other hand,real wage unemployment occurs as "cyclical unemployment" wherein the general case exists due to the excess labour supply in the economy brought about by the real wage rate set above the market clearing level
4 Pages(1000 words)Essay
Unemployment in the UK
Despite the level of growth and development of different countries all over the world, the problem of unemployment continues to persist. In the United Kingdom alone, latest statistics
6 Pages(1500 words)Essay
High and low culture
The author of the essay emphasizes the idea that the continuous development of technology has been the basis for significant changes in daily ethics and traditions. Furthermore, culture, in all its forms, has been also affected.It is stressed, two forms of culture have common historical roots, meaning that they have appeared almost simultaneously.
8 Pages(2000 words)Term Paper
Economics: Unemployment
United States Bureau of Statistics announces unemployment data in the start of each month. The report encompasses unemployment counts in all the sectors of economy. The Bureau conducts surveys through interrogating households and perusing data
3 Pages(750 words)Essay
What causes structural unemployment
Despite the large amount of resources that most governments are using to educate and train young people, majority of them especially in the developing countries continue to face high long term unemployment. Unemployment is defined as the
6 Pages(1500 words)Essay
Unemployment
Unemployment has a negative effect on the economy and the quality of life of its citizens. Since unemployed individuals do not have a source of income, they cannot meet
2 Pages(500 words)Essay
Let us find you another Essay on topic Low Production and High Unemployment for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us