Currency is used to buy items and services. Currency can circulate in the economy and impact inflation and deflation. If inflation rises, prices for goods such as clothes will increase and I may have to pay more for a shirt that I want to buy. Different nations use different types of currency. Most currencies can be traded for a different type of currency, which can be used to buy goods and services in another country.
Cyclical unemployment is a result of a business not doing as well as it should. A business may not be making enough profit from their goods and services because customers are not buying their products. Because business is down, workers may be laid off, leaving more people without jobs. If my cousin sold cars during a recession, he may be fired because not as many people were buying cars. There weren’t as many people buying cars, so the company didn’t need as many employees. …show more content…
The higher the price of a good or service, the less of that good or service people will want. If a grocery store lowered its price of butter from $1.25 to $1, more people would buy it. If the grocery store decided to change the price of butter from $1.25 to $1.50, less people would buy it. Sometimes other factors can cause consumers to buy different amounts of a product at the same price: if the grocery store lowered the price of margarine from $3 to $0.50, the demand for butter would decrease since margarine could be used in its place.
Depression is a prolonged recession. During a depression, large numbers of people are unemployed, there’s a drop in available credit, and reduced trade and commerce. It can discourage spenders and investors. As borrowing and spending decreases, so does demand, which causes businesses to lay off workers. Less money is being circulated, which causes the economy to shut
Cyclical unemployment is a result of a business not doing as well as it should. A business may not be making enough profit from their goods and services because customers are not buying their products. Because business is down, workers may be laid off, leaving more people without jobs. If my cousin sold cars during a recession, he may be fired because not as many people were buying cars. There weren’t as many people buying cars, so the company didn’t need as many employees. …show more content…
The higher the price of a good or service, the less of that good or service people will want. If a grocery store lowered its price of butter from $1.25 to $1, more people would buy it. If the grocery store decided to change the price of butter from $1.25 to $1.50, less people would buy it. Sometimes other factors can cause consumers to buy different amounts of a product at the same price: if the grocery store lowered the price of margarine from $3 to $0.50, the demand for butter would decrease since margarine could be used in its place.
Depression is a prolonged recession. During a depression, large numbers of people are unemployed, there’s a drop in available credit, and reduced trade and commerce. It can discourage spenders and investors. As borrowing and spending decreases, so does demand, which causes businesses to lay off workers. Less money is being circulated, which causes the economy to shut