The two major problems facing the economic development of every country are a high unemployment rate and a significant rise in inflation for a prolonged period of time. Answer:The relationship between the unemployment rate and economic growth in a country.The relationship between the inflation rate and economic growth in a country.Comment regarding the two expressions presented at the end and the possible relationship with particular situations that affect the economic development of a country.(The 2 expressions are:One of the benefits of unemployment is that it allows for higher quality job search and promotes economic efficiency, but it increases the unemployment rate and creates economic recession.Unanticipated high inflation redistributes society's income, diminishes the ability to make long-term plans, and forces individuals, governments, and businesses to carefully evaluate the purchasing power of their assets. )

Answered: The two major problems facing the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The two major problems facing the economic development of every country are a high unemployment rate and a significant rise in inflation for a prolonged period of time. Answer:

The relationship between the unemployment rate and economic growth in a country.
The relationship between the inflation rate and economic growth in a country.
Comment regarding the two expressions presented at the end and the possible relationship with particular situations that affect the economic development of a country.

(The 2 expressions are:

One of the benefits of unemployment is that it allows for higher quality job search and promotes economic efficiency, but it increases the unemployment rate and creates economic recession.

Unanticipated high inflation redistributes society's income, diminishes the ability to make long-term plans, and forces individuals, governments, and businesses to carefully evaluate the purchasing power of their assets. )

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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Step 1: Define Recession:-

A prolonged period of weak or negative real GDP (output) growth that is accompanied by a noticeably higher unemployment rate is known as a recession. During a recession, a lot of other economic activity indices are similarly weak.

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