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Final answer:
Unemployment's impact on a country's economy includes decreased production, rising job losses, and reduced consumer spending.
Explanation:
Impact of Unemployment on the Economy
Unemployment affects the economy of a country in various ways. When people lose jobs, they have less income, leading to reduced consumer spending. This, in turn, decreases demand for goods and services, causing businesses to produce less, lay off workers, and invest less in new ventures, creating a cycle of economic decline.
- Production Decrease: In a recession, the total production of goods and services decreases.
- Job Loss: Unemployment rises as people lose jobs and struggle to find new employment.
- Low Consumer Spending: Reduced income leads to decreased consumer spending, impacting businesses and the overall economy.
Learn more about Impact of Unemployment on the Economy here:
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