Taking into consideration the information collected, it is evident that high unemployment rates are the one that could have resulted to slower economic growth. High unemployment level results from low firm productivity which is coupled with little returns that such organizations obtain form the sales that they make. As the majority of the firms end up lacking competitive edge, it becomes difficult for them to enjoy the economies of scale (Ncube & Ndou, 2013). Therefore, the lack of incentivizing businesses to recruit more workers, it implies that the country do not have the capacity of spurring economic growth. Likewise, in the process of restricting government expenditure, unemployment also becomes an obstacle for breaking inflation. This does not also take into account the need of reversing other issues associated with overheated economy. Characteristically, what this collected information implies is the fact that the only option that the state has entail determining the productivity levels of its existing industries (Jordi, 2011). The reason for that is because it is the one that will give it the potential of stimulating economic growth. What all this implies is the fact that the process taking high unemployment into consideration, it means that such a scenario did not have the potential of balancing the economic wellbeing. The general lack of proper employment opportunities could have also contributed to retardation in economic growth (Keynes, 2018).

            From economic perspective, unemployment is something that limit economic growth.  Consequently, monetary policy is one of the factors that have been economically perceived to have the likelihood of maintaining price stability. Taking the cost of production into consideration, the low demand for a firm’s commodities with respect with decreased production is what result into the low demand for workers. Therefore the use of the use of the prevailing monetary policy both in the short-term and long-term will have the ability of cutting down interest rates. As such a step will be lowering borrowing; it has the ability of stimulating investment activities. The existing firms and those upcoming will be motivated to produce more, hence the need for recruiting more workers to cater for that (Keynes, 2018).

            The use of fiscal policies is one of the methods that have been approved to have the ability of increasing employment rates. To do so, the state will have to ensure that they have engaged expansionary fiscal policy so as to be in the position of increasing aggregate demand (Sexton, 2008). Nonetheless, with unemployment, the state economists ought to take into consideration the fact that such a policy will aid in diminishing the level of unemployment through encouraging firms to have a big picture regarding increasing production. The reason for that is because using enough human labor will in return result to increased production and profits from the sales they make. Such an objective can also be arrived at via decreasing taxation as well as increasing expenditure by the government (Friedman & Woodford, 2010). For instance, in the act of lowering taxes, it will become possible for the state to increase its disposable income. The effect of that is that it will assist in increasing consumption. In the long-run it will be easier to experience increased aggregate demand which ultimately will be emanating from continued demand for workers to work in firms that desire to manufacture or produce more (Ncube & Ndou, 2013). The importance of this is that it will ultimately lower what is termed as demand-deficit redundancy.

                                                           

 

 

 

                                                            References

Friedman, B. M., & Woodford, M. (2010). Handbook of Monetary Economics, Volume 3B. Burlington: Elsevier Science.

Jordi, G. (2011). Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective. MIT Press

Keynes, J. M. (2018). The general theory of employment, interest, and money. [Cham, Switzerland] : Palgrave Macmillan

Ncube, M., & In Ndou, E. (2013). Monetary policy and the economy in South Africa. New York : Palgrave Macmillan

Sexton, R. L. (2008). Exploring economics, [ECH master]. Toronto: CNIB.