| How does unemployment affect the circular flow model? |
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 | Unemployment can affect the circular flow by house holds not spending on goods and services. | |
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| This means that the product market won't be able to flow to houses, if people don't have money to spend. | |
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| Without employees businesses will not be able to produce goods, when short on staff. | |
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| Businesses will not get much revenue back. | |
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| There will be no resources, if there are no workers. | |
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| Resources will be expensive without any revenue to pay back the resource market. | |
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