Author Question: What are the social and economic implications of unemployment? Explain. What will be an ideal ... (Read 56 times)

rosent76 · **on:** Jun 30, 2018

What are the social and economic implications of unemployment? Explain.

What will be an ideal response?

Question 2

Briefly explain why the reported official unemployment rate in Spain in 1994 may have provided an over-estimate of unemployment in Spain.

What will be an ideal response?

momolu · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Economic implications: signal of economic activity and measure of the utilization of labor. Social implications: the emotional and psychological suffering that occurs as a result of being unemployed.

Answer to Question 2

The relatively high unemployment rate in Spain is partly the result of a relatively large underground economy. The underground economy is that part of the economy not measured in official statistics. After taking into account those individuals who are employed in the underground economy, the unemployment rate in Spain would have been lower (but still relatively high).