How does unemployment affect consumer supply?
Question by : How does unemployment affect consumer supply?
I have to write a 15 page paper and do a 15 slide PowerPoint. I chose to do mine on unemployment and how different components effect it or are affected by it. Right now I’m focusing on how unemployment has affected consumer supply as well as government spending.
So, how does unemployment affect consumer supply? How does it affect government spending? If possible, please provide resources or guide me to places I can find good, strong info.
Thanks!
Best answer:
Answer by rocky
The answers are somewhat intuitive AND you should be able to find graphs correlating unemployment figures corresponding with levels of government expenditures. Government spending first; as unemployment rises there are more claims for benefits. Financial aid being the government expense which obviously increases as a direct result of these claims. As far as consumer supply being affected by unemployment; this as an indirect result of supply and demand. As lesser amounts of money are available for the purchase of goods, fewer goods are sold. As the demand lessens so does sales forecasts. These forecasts result in fewer orders placed with manufacturers. Retailers do not want to hold onto excessive inventory which is costly both from the perspective of cash/credit outlay and for storage costs. The smaller orders for manufactured goods is the same as smaller consumer supply levels. This is the same for retail and wholesale goods. All of the above are spiraling effects and they are not easily reversed.
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Originally posted 2012-06-25 17:15:02. Republished by Blog Post Promoter
Categories: Answers Tags: affect, consumer, Financial Aid, Government Spending, Graphs, Money, Perspective, Supply, Supply And Demand, unemployment, Wholesale
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Cavitt Creek county unemployment relief camp, Umpqua National Forest
Some cool resource for a library images:
Cavitt Creek county unemployment relief camp, Umpqua National Forest

Image by OSU Special Collections & Archives : Commons
Description/Notes: USFS photo #282897
Original Collection: Gerald W. Williams Collection
Item Number: WilliamsG:CCC Cavitt Creek camp 2
You can find this image by searching for the item number by clicking here.
Want more? You can find more digital resources online.
We’re happy for you to share this digital image within the spirit of The Commons; however, certain restrictions on high quality reproductions of the original physical version may apply. To read more about what “no known restrictions” means, please visit the Special Collections & Archives website, or contact staff at the OSU Special Collections & Archives Research Center for details.
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