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Elina [12.6K]
3 years ago
9

Why do countries pursue the macroeconomic goal of full employment?

Law
2 answers:
timofeeve [1]3 years ago
5 0

full employment ensures that citizens who want to work can find jobs

WINSTONCH [101]3 years ago
4 0
Answer:

when a country experiences full employment, its people have more income and are more likely to spend money. This leads to increased revenue for businesses, increased profits for entrepreneurs, and increased economic growth.

Explanation:

Unemployment means that a person does not possess a job. A low unemployment rate implies that a country is productive in nature as people who want to get employed are mostly got job.

Although there are a lot of factors determining economic growth, by taking these two variables, one can say that when there is full employment the employed will earn a lot and by doing so it will result in more expenditure in the form of more purchases.

More purchases from the company means that the government can gain more revenue in the form of taxes, entrepreneurs can gain more revenue through sales. More revenue implies that the economy can grow.
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