Discuss the benefits of having a high employment rate.

Having a high employment rate means that have a low unemployment rate.Unemployment which is the people who doesn't have a job but able and willing to have a job.And we know that unemployment is one of the macroeconomic performances.We want to achieve low unemployment in our economy .Which is also means we want to achieve a high employment . So let's discuss the benefits of having high employment.

Firstly a high employment could helps the government budget .Because if the employment is high means less unemployment so less job seeker allowance the government have to give.So that make government spending less and also a lot of people have a job and the will able to pay tax So the government also can get more tax revenue so that may leads to a government budget surplus and government will have more money are able to spending on the right place for example the NHS ,schools or to give some subsidy to business companies to encourage them to produce.So the second on is because if the employment rate is high more people will more likely to spend so consumption will be high .And also because the reason government subsity and consumption are high firms get more invertment and prouduce.So we know the formula AD=C+I+G+(X-M) so that if the Consumption goes up the Government spending goes up the investment also goes up aggergate demand will also increase ( a graph should be show which is the AD shift to the right).And if the AD increase real GDP will increase as well.And then will have a short run economic growth and will created more jobs and more people will get a job~ And the third one I want to say about is if the a high employment rate may cause a high inflation .( demand pull inflation)...

A high employment rate means that the economy is strong !