The Problem Of High Unemployment Essays
a) It has a high unemployment which stems from an insufficient use of resources.
The issue of unemployment is a big challenge in the world because it affects both the developing, underdeveloped and developed nations. One of the reasons why there is high unemployment is because of the nation’s resources are not comprehensively utilized. To solve the issue of high unemployment level, we offer some policy recommendation. The first strategy is the demand side policies which are aimed at reducing unemployment that results from recession hence decreasing demand –deficient unemployment. The second strategy is the supply side policies that are meant to solve the cases of structural unemployment.
The third policy that we recommend to the president is the monetary policy which will focus on reducing the interest rates to enhance AD. Also, the government should ensure that more resources are put into use to create more job opportunities. For instance, the government should invest more in agriculture to create employment in the rural areas and to also create a labor-intensive industrial growth to solve the high unemployment in the urban areas.
b) It faces a current account deficit.
The issue of a current account deficit can be solved be solved by implementing some policies. The first policy we will recommend to the president is devaluation to introduce the expenditure switching policies that encourage…