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ECONOMIC ISSUES, Every government has the obligation to set certain…
ECONOMIC ISSUES
Balance of Payments
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There is positive balance in a country when the value of exports is greater than the value of imports.
When the value of imports is greater than exports, we .have a balance deficit. When this happens, countries may often borrow other countries foreign currencies. However, this comes with expensive rates of interest. Which affect the exchange of rate as well.
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Low Uneyployment Rates
All countries aim to have uneyployment rates.So that people have the greatest amount of jobs and opportunities.
This means, that the government doesn't have to spend money on benefits for those who are unemployed.
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When the rate of employment is high, the more taxes government sets, and more income they receive.
Inflation Rates
When inflation is low in a country, the quality of life improves as goods and services are affordable.
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When inflation is high, not all good and services rest available to the population, they require buying foreign goods, rather than local ones.
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Economic Growth
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If GDP is increasing, it shows that good and services are constantly increasing in production. GDP increases the standard of living.
When it falls, this means that good and services are reduced, which also reduces the amount of employees needed. Lowers the standards of living since goods become expensive.
Every government has the obligation to set certain economic objectives. Aiming to appease social and economic issues that involve society. This may be done through taxes and interest rate policies.