Question

22. “Unemployment leads to low income and low savings and hence low

demand and low production. This is the identification of a depressed

economy.” Support the statement with your justification.

easy explanation please
​please answer I will give brainliest answer

Answer 1

Like I’ll explain in an easy way you need to just frame
If a person in a place loss his job he gets unemployed and then his incoming income from his job gets nil and then he cannot save much money as he use to do save before getting fired and if he has less savings then he will have less money and he cannot buy things which he wants if it is out of his limit and then the company’s product which he wanted to buy but can’t buy the company thinks that there is less demand and then they will produce less product if they produce less product they will have less contribution to the economy. Hence less economy.