E3conomics question

E3conomics question
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  • How does unemployment affect the circular model?
  • Well lets find out
  • Ohh ok, but how does it affect the economy itself?
  • The main thing with unemployment is that there are no people working and so there no jobs for people to work.
  • So that means that a company wont be making money enough to stay open.
  • Well when there are no products being made, the companies cannot sell the amount that consumers want.
  • But couldn't the government do something about it?
  • And if that happens then people wont be able to buy their needs that the companies sell.
  • Well that makes more sense.
  • You would think that but when there arent any people working in the government then, there is no people to control the chaos.
  • Exactly.
  • So if there was unemployment, the economy would be affected drastically. 
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