How does unemployment negatively impact an…

Maths Questions

How does unemployment negatively impact an economy? Check all that apply: – Unemployed individuals typically buy fewer goods and services. – Unemployed individuals may struggle to repay their loans. – Unemployed individuals are often not actively seeking employment. – Unemployed individuals do not have increased buying power. – Unemployed individuals may need to adjust their financial goals.

Answer

The correct answers are: Unemployed people usually buy fewer things. Unemployed people may not be able to repay their loans. Unemployed people may have to change their financial goals. Explanation: When individuals are unemployed, their income drastically decreases, leading to reduced spending on goods and services. This decline in consumer spending adversely affects businesses that rely on sales for profit. Furthermore, without a stable income, unemployed individuals often struggle to meet their financial obligations, making it difficult to repay loans, which in turn impacts the banks that issued those loans. Additionally, unemployment can force individuals to rethink their financial aspirations; they may have to abandon plans to invest or consider purchasing real estate, thus negatively affecting the financial institutions and real estate markets related to those transactions.

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