Question

How the economic problem, nature, and method affect the behavior/activities of individuals, families, firms, and governments? Give real world example.

Answer 1

Joblessness has been a significant monetary issue in cutting edge economies. One of the chief reasons for unemployment is swings in the business cycle. A fall sought after for products during a downturn, makes individuals be laid off. On account of the discouraging condition of the economy, there is an irregularity among request and gracefully of laborers.

A downturn is a time of negative monetary development – a decrease in the size of the economy. It intensifies issues of disparity and joblessness. A matter of downturn is that it can make a negative winding. At the point when request falls, firms lay off laborers. The jobless have less cash to spend creating additional falls accessible.

Poverty cycle: Some creating economies might be stuck in a destitution trap. Low development and low sparing proportions lead to moderate degrees of the venture and along these lines low financial development. This low development and destitution cause low reserve funds and speculation to have proceeded.

During a weak economy, organizations will most likely be unable to stand to keep the entirety of their workers. After an occupation misfortune or cut back in pay, families may think that its difficult to manage the cost of their kids' advanced degree. Youngsters may feel the effect of budgetary battles at school when families can't give sufficient human services, summer exercises or dependability with habitation.

Example:

As indicated by Stephanie Coontz, co-seat of the Council on Contemporary Families, during a monetary downturn, ladies delay having births. During the 2010 economic downturn, there were 200,000 fewer births by ladies matured 20 to 34 then there were in 2008 despite the fact that the number of ladies in this age bunch developed by more than 1 million