National Unemployment Rate Rising, Rate of Inflamation Falling

1.Given the condition presented in the headline above, what is likely to happen to spending in
the economy? Explain you answer.
Ans
.
Due to the rising unemplyment and inflamation falling spending capacity of an individual
declines. Spending depends on the level of our income. If the households have higner
income it is likely they increase their spending on many goods and services.

2.What is the relationship between spending and output in the situation?

Ans
.
If the spending decreases , output or productivity also decreases because of the demand
and consumptions. Spending/ demand is one of the variables/factor to determine wether
there will be an increase/decrease of output

3. What is likely to happen to real gross domestic product as a result of relationship between
spending and output?
There are three factors on how to compute the GDP. Expenditures,production and Income.
Ans If one factor declines intance is GDP also decreases.GDP is also a health check of the
. economy of the nation. If the contry is experiencing growth or recession

* A consumer wants to buy a television set.She is deciding between a standard model with 19
screen or a more expensive de luxe model
with a bigger screen and a built in DVD player. How can she use an analysis of cost and benefits
to help her choose.
Ans
.
The De luxe model is more expensive than the standard model due to the following
reasons. It has wider and more features than the standard. You are not just paying
for the TV you are paying for the additional features and its benefits.

*The national government does not subsidize health for its citizen, but it does subsidize public
education. From an economic
standpoint is this reasonable position for the governent. Explain.
Ans. No. Creating more people to do the job but do not also prioritizing the welfare of
the people who is doing the job . There should be a perfect balance for it. But due to the
current situation of our economy, the government cannot support all the projects. So they
are only choosing what they think is the most important.