as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the economic impact of rising unemployment rates.
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rising unemployment results in a decrease in the spending power of consumers, which affects businesses’ ability to generate profits. it also results in a decrease in tax revenue, which affects government’s ability to pay for services, such as infrastructure and health care. therefore, rising unemployment has a major economic impact both on individuals and society as a whole.
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