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In September 2018, the U. unemployment rate fell to 3.7 percent, its lowest level in 49 years.

In September 2018, the U.S. unemployment rate fell to 3.7 percent, its lowest level in 49 years. An unemployment rate this low is often viewed as being very good for the economy, so explain how this low unemployment rate benefits the economy in terms of the following:

  • productivity and GDP growth
  • wages and wage growth
  • consumer confidence
  • labor supply & demand
  • entitlement spending

An unemployment rate this low can also be viewed as being detrimental to the economy, so explain how this low unemployment rate may also damage the economy in terms of the following:

  • productivity and GDP growth
  • employee loyalty
  • potential inflation
  • labor supply & demand

Top Answer

Reduced unemployment has been witnessed to cause both benefits as well as damage to... View the full answer

New Doc 2018-12-31 12.02.52_5.jpg

Benefits of low unemployment rate
is Productivity and GDP Growth
the economy
The low unemployment rate leads to rapid growth and
increased productivity as the organisations in need of
labour are...

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