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A country is dealing with a serious macroeconomic problem. Businesses around the country have been shutting down, leaving millions of people out of work. Even citizens with a high level of education and tech. Which problem is this country dealing with?

1) A rapid growth in GDP
2) A low per capita GDP
3) A high level of inflation
4) A high unemployment rate

User Bryan Way
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1 Answer

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Final answer:

The country is dealing with 4. a high unemployment rate, as the mass closure of businesses and resulting widespread joblessness indicate, rather than issues related to GDP growth or inflation.

Step-by-step explanation:

The country in the scenario described is dealing with a high unemployment rate. When businesses are shutting down and millions of individuals, irrespective of education level, are left without work, this is symptomatic of a high unemployment situation. It is not indicative of a rapid growth in GDP, as business closures typically reduce economic activity. Nor does it specifically suggest a low per capita GDP or a high level of inflation without additional economic context.

Macroeconomic policy goals often include achieving low levels of unemployment and controlling inflation. A high unemployment rate persists as a macroeconomic challenge across different economies, often exacerbated by downturns like financial crises or pandemics. Economies aim to improve standards of living through growth in human capital, physical capital, and technology, focusing on sustainability in the long term. However, short-term obstacles, such as a high unemployment rate, require immediate policy responses, which may include expansionary fiscal policy to stimulate economic activity.

User Honeymoon
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