
In any money using entreprensurial economy, entrepreneurs' decisions regarding production and hiring depend on expectations of receiving contractual sales revenues ( cash inflows) in excess of the contractual money costs of production ( cash outflows). Since, the money wage contract is the most efficient oriented contracts, modern economies can be characterized as money-wage contract-based systems.Hence, money processes two essential elasticity that differentiate is from the products of industry. These describe why (a) money does not grow on trees ( money's elasticity of production is zero )and (b) why producible products are not good liquid stores of value ( the elasticity of substitution between liquid assets, such as money and producible products is zero).If money has these elasticity, then unemployment develops, that is to say, because people can not be employed, when the object of desire ( i.e. money, good useful product or good quality product, even shopping enjoyable feeling,) is something which can not produced and the demand of shopping desires are reduced to the country's people.Hence, unemployment rather than full employment is a normal outcome in any entrepreneurial, market oriented, money-contract-using system in a free competition market environment to the country. So, when the country's people consumption desires are reduced in possible, because unemployment rare rises or living of cost rises, general products prices rise, a spot or commodity price inflation etc. different factors. Then, they will influence the country's economic recession occurrence more easily. Thus, any countries leaders can not neglect the relationship between unemployment and consumption desire and economic growth or recession relationship. Because in long term, unemployment ratio rises, it has possible to bring many consumers their shopping desires to be reduced as well as economic recession effect to the country.
Page Count:
182
Publication Date:
2020-05-10
Publisher:
Independently Published
ISBN-13:
9798644718559
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