Unemployment Rate: Impact on GDP and Inflation Research Paper

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The results of the game show the critical importance of government expenditure and controlling the major showings. First of all, it helps to monitor inflation levels and ensure the citizens remain satisfied, and the economy grows. Additionally, the decision to reduce the unemployment rate is vital for the economy as it helps to sustain the appropriate GDP levels, avoid inflation and help community members to survive. The given decisions also lead to a low budget deficit, which is one of the leading indicators of the economy’s health and its ability to overcome crises.

The results of the second scenario show the critical situation that might emerge because of the inappropriate solutions. The high unemployment rates are closely linked to the extreme inflation rates, which have an overall pernicious impact on the economy. Additionally, the budget surplus becomes high due to the lack of sources of income. It means that the real GDP is not the most crucial determinant when speaking about the economy and its health. Instead, it is vital to focus on decisions helping to improve citizens’ real states, such as providing them with appropriate jobs and ensuring the inflation rate remains low.

Finally, the third simulation shows that the combination of specific factors, such as average unemployment rates and poor GDP growth, might be dangerous for the state and its economy. Although the accepted decisions led to low inflation rates and budget deficit, the approval rate remains low because of the problematic access to the sources of income and lack of real money that can be used to meet current needs. In such a way, the scenario shows it is vital to preserve the balance and avoid decisions focusing on only one aspect of the economy.

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IvyPanda. (2023, December 28). Unemployment Rate: Impact on GDP and Inflation. https://ivypanda.com/essays/unemployment-rate-impact-on-gdp-and-inflation/

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"Unemployment Rate: Impact on GDP and Inflation." IvyPanda, 28 Dec. 2023, ivypanda.com/essays/unemployment-rate-impact-on-gdp-and-inflation/.

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IvyPanda. (2023) 'Unemployment Rate: Impact on GDP and Inflation'. 28 December.

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IvyPanda. 2023. "Unemployment Rate: Impact on GDP and Inflation." December 28, 2023. https://ivypanda.com/essays/unemployment-rate-impact-on-gdp-and-inflation/.

1. IvyPanda. "Unemployment Rate: Impact on GDP and Inflation." December 28, 2023. https://ivypanda.com/essays/unemployment-rate-impact-on-gdp-and-inflation/.


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IvyPanda. "Unemployment Rate: Impact on GDP and Inflation." December 28, 2023. https://ivypanda.com/essays/unemployment-rate-impact-on-gdp-and-inflation/.

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