ANXIETY LEVELS OF AN INDIVIDUAL IS

AFFECTED BY THE BUSINESS CYCLE OF A

COUNTRY

BY ANNISA TIARA

INDIVIDUAL RESEARCH PROJECT

Submitted as a requirement for the marking fulfillment in the following subjects; Economy &

Sociology, in Victory Plus High School.

Bekasi, Indonesia, 2013/2014.

PREFACE

I would like to thank my beloved mentor, Ms. Fenty Gultom, for sparing her time to look into my

project and consult with me for improvements. As she is my former Economics teacher and my

current Business Studies teacher, I am inspired by her and also her knowledge in psychology,

leading me to my project’s topic.

My family, especially my dad, I would like to thank him for his time giving me further

explanations when needed about the world of economy.

I would like to thank my friends for always supporting me in finishing my project also the Senior

High School Students of Victory Plus for cooperating with me in giving their parents

questionnaires. To the parents of the students, thank you too.

Last and my utmost gratefulness is to God, the ultimate beginning and end, the eternity, for giving

me the ability to finish the project well, and for life. I am grateful for everything.

Here’s to humanity and our mental health.

Cheers.

Annisa Tiara,

24th February 2014

ABSTRACT

The conducted research is about anxiety levels of individuals whether or not they are affected by the Business Cycle of a country. This aims to find out relationships between the two variables. The basic question that is trying to be answered is if anxiety is affected, to what extent does it affect it? To answer the question, questionnaires were spread out regarding the financial factors and anxiety. The population is randomly chosen as I used a random sampling method. I have learned that financial instability does affect anxiety levels. Though, no clear extent is determined. This is due to individuals being different from one to another. My hypothesis has proven to be right.

TABLE OF CONTENT

1. INTRODUCTION

1.1 Research Question

1.2 Aim & Objectives

1.4 Hypothesis

2. SUPPORTING THEORY

2.1 Understanding The Variables

2.2 Variable X: Business Cycle

a. Monetarist Theory

b. Austrian Theory (Schumpeter)

c. Burns, Mitchell & The Keynesian Theory

d. Conclusion to The Business Cycle

2.3 Variable Y: Anxiety

a. Types and Symptoms of Anxiety

2.4 Correlation of X and Y

3. METHODOLOGY

3.1 Conducting The Research

3.2 Analysis Of Results

a. Employed Respondents Results

b. Unemployed Respondent Results

4. CONCLUSION

1. INTRODUCTION Anxiety an insidious plague that most of us ignore, which turned out to be more deadly rather than

car crashes. In the United States of America during year 2010, according to the C.D.C, people

who died due to vehicle accidents were 33,687 people, and suicidal death were counted by 38,364

(New York Times, Parker-Pope, 2013).

“Personal factors are often a source of [anxiety]. These include career related concerns such as…

financial concerns” (Walonick, S. 1993). A fluctuation in an economic system of a country (The

Business Cycle) –which causes financial shifts stimulates financial concerns. All the phases that

the cycle seemed to have an effect towards people and their anxiety levels, especially the phase of

recession. Thus, this thesis will be investigating the relationship of the Business Cycle and the

anxiety levels.

1.1 RESEARCH QUESTION

To what extent could a Business Cycle affect the anxiety level of an individual?

1.2 AIM & OBJECTIVES

To make aware of society about anxiety and also to help humanity understand more about

themselves and what they are feeling.

1.3 HYPOTHESIS

I believe that by doing this investigation I would come to a result where anxiety level of an

individual is indeed affected a business cycle of a country. Financial instability causes anxiety

levels to increase.

2. SUPPORTING BACKGROUND 2.1 UNDERSTANDING THE VARIABLES

A variable is a characteristic that varies and changes according to the relationship between factors.

Basically there are two variables; Independent Variable (IV) and Dependent Variable (DV).

“The following is a hypothesis for a study.

1. "There will be a statistically significant difference in graduation rates of at-risk high-school seniors who participate in an intensive study program as opposed to at-risk high-school seniors who do not participate in the intensive study program." (LaFountain & Bartos, 2002, p. 57)

IV: Participation in intensive study program.

DV: Graduation rates”.

Independent & dependent variables. (n.d.). Retrieved from http://www.uncp.edu/home/collierw/ivdv.htm

Simply, the IV (variable X) is the main factor on the research; a presumed cause, whereas the DV

(variable Y) is the resultant; the presumed effect. In this research, the two variables that take part

is the Anxiety Level as the dependent variable and the Business Cycle as the independent variable.

2.2 VARIABLE X: BUSINESS CYCLE

A. THE MONETARIST THEORY

According to the explanation by Professor Tyler Cowen in the Monetarist Theory, “…monetary

growth is very important to the business cycle…” This theory is basically an economic concept

that exhibits the significance of the rate of economic growth. An idea proposed by Milton

Friedman stated that when the monetary supply is stabilized it would prevent excessive growth or

declines that might lead to inflations or economic downturns. The Monetarist Theory has a

relationship with the Quantity Theory of Money, which was developed by the first monetarist in

the United States, Irving Fisher. The theory was;

MV=PT

Whereas M stands for the money supply, V is the velocity of the circulation, P is the price level

and T stands for the transactions (output).

There are several events that evince the Monetary Theory to be proven. The deflationary pressures

that lead to an economic downturn in the period of 1970s, when a stagflation 1 occurs, is one of                                                                                                                1  Stagflation:   A   persistent   high   inflation   combined   with   high   unemployment   and   stagnant  

demand  in  a  country’s  economy.  

the examples. It shows that the monetarist theory is applicable. During the period, the interest and

inflation rates are very high, making the Federal Reserve have to decrease the money supply.

When they did do so, deflation and unemployment increases, just as what was predicted. Though

this proves that the Monetarist Theory is working, monetarism fails to convince economists for

actions on controlling the growth of money supply.

B. THE AUSTRIAN THEORY (SCHUMPETER)

According to the Austrian Theory and Schumpeter, the main artist in the business cycle is the

entrepreneur. This happens when the government ‘manipulates’ the flow of the money, which

leads to false ideas about the economical condition and triggers the entrepreneurs to make

unsustainable decisions. When the central bank escalates the money supply, the interest rates will

fall down to a cheap rate because there are more money to be given. Thus, as the price of the

money is cheaper to borrow, the entrepreneurs will increase their investments and take long-term

project risks. In the Austrian Theory, this event will be followed by a boom phase. Then the hopes

of wealth and richness of the entrepreneurs will collide, as failures arise and the boom, (or so

called bubble) explodes. This theory appeared to be proven between the year 2001 and 2004

where the Federal Reserve were loose with credit. Investment in housings have expanded and

aired the ‘housing bubble’. But then as soon as the house prices went down, the investments

turned unprofitable and the bubble explodes. Credit bubbles, Great depression and other recent

recessions have been one of the evidences believed to support this theory.

C. BURNS, MITCHELL & THE KEYNESIAN THEORY

Another perspective to see the Business cycle is explained by Arthur F. Burns and Wesley C.

Mitchell who are both well-known economists from the periods of the late 1800s to 1970s.

According to them in their book ‘Measuring Business Cycle’, the cycle defined as a type of

fluctuations that are found in economic activities of a nation. It shows the swing in the activities,

shown and measured by both the growth and declines of the real GDP number through time. The

cycle is not solely the fluctuation of aggregate economic activities, according to Burns, there are

other factors affecting the cycle; the industry itself, commercial dealings and finance difficulties.

In similar to the previous idea, the Keynesian Theory of the Business Cycle by John M. Keynes

explains that the business cycle is affected by three variable factors. They are the consumption,

investment and government spending. This is known as the aggregate demand whereas the

formula is as such;

AGGREGATE DEMAND = C+I+G

In the Keynesian Theory, is believed that when the aggregate demand falls the production of

goods and services are also decreasing as they realize that consumers are loosing the propensity to

consume. When people are starting to loose interest in spending, firms will try to attract them back

by lowering the price. To handle this adjustment and still making profit, the firm has no more

choice than to reduce the production cost, e.g.: cutting wages. Cost cutting by wage cutting is

cutting also the motivation of labor thus; cut of productivity. In the end, delayering happens and

this increases unemployment, dragging the aggregate demand further down. Combining the fall of

the aggregate demand and the cost cutting, this will lead to systemic crisis. Overall the Keynesian

Theory gives accurate points on describing the real-world fluctuations of the business cycle but

Keynesian Theory is short of solutions to solve crisis.

D. CONCLUSION TO THE BUSINESS CYCLE

Riley, J. (Photographer). (2012, September 23). Economic Environment-Business Cycle [Web Graphic]. Retrieved from http://www.tutor2u.net/business/strategy/economy-business-cycle.html -Graph 1.0 In simple words the cycle is the swings in the economic activity that is measured by the amount of

the real GDP. In most economy, the phases of a Business Cycle occurs as shown in the picture

above. The first phase is the boom where there is a great increase in economic activity, creating an

increase in the real GDP amount. Then comes the recession, where the economic activity starts to

be idle and in this phase the government should’ve been precautious. Then comes the slump,

whereas the situation of the economy is free falling and crisis is happening. After the crisis comes

the recovery growth that leads to another phase of boom.

There is no exact explanation or theory to make understanding of the business cycle. There is also

no wrong but only rights and connectivity amongst each and every theory that exist. The business

cycle is a process of progress to decline, followed by another progress and another decline of the

economic system of a country. It is constructed by many theories and emphasizes great ideas and

solution to face and prevent the slump in the Business Cycle.

2.3 VARIABLE Y: ANXIETY

“Anxiety is an emotional and/or psychological response to known and/or unknown causes that

may range from a normal reaction to extreme dysfunction (in indication of an anxiety disorder),

affect decision making…” ([APA], 2000; Bush & Griffin-Sobel, 2002; Noyes, Holt, & Massie, 1998; Vitek,

Rosenzwei & Stollings, 2006; Shahrokh & Hales, 2003)

Anonymous. (Composer). (2013, December 30). The Anxiety Cycle can be Broken [Web Graphic]. Retrieved from http://www.burncycleinc.com/ Graph- 1.1 Anxiety Cycle

There is more than a perspective to anxiety. In the eyes of a biologist, the basic biological

explanation of anxiety is caused by the reaction of brain function to fear. Current research

indicates that anxieties are caused by neurological activities in the emotional department of the

brain. The neurotransmitter known as the GABA (Gamma-Aminobutyric Acid) is released

through the neurons working in the department. When the level of GABA is low, there will be

failure to arouse other neurons in the brain but are able to increase the neurological activities in

the area of the brain responsible for awareness. This is named as anxiety. There are several drugs

that can increase the GABA levels, which will reduce neural activities and decrease anxiety level

of an individual.

Another perspective is through the cognitive glasses. The basic assumption from the cognitive

perspective is that people have wrong cognitions towards something that leads to anxiety. Such

erroneous cognitions are believed to be produced through someone’s traumatizing experiences in

the past or a thorough observation of other’s life experience. Cognitive scientists believes that

when once a person thinks in a way towards something, the cognition/belief will be maintained

because it has a direct influence on the person’s current and future functioning. This allows

distortion in the interpretation of events that occurs around them and will lead to a belief system in

their life.

Anxiety  

Panic  

Depression  

More  Anxiety  

More  Panic  

More  Depression  

Through the learning theorists’ perspective, anxiety is conditioned as a response and they are

learned as behaviors. Anxiety shows when a previously neutral stimulus paired with a condition

develops into fear. Similar events to the condition that develops the neutral stimulus will also

elicit fear, which triggers the same anxiety. For instance, when someone was bitten by a dog will

begin elicit fear in dogs or perhaps other animals similar to dogs.

To explain the states and or maintenance, causes of anxiety there has no theory that can fully take

into account all factors. Many depend and vary to each individual. There are no specific or exact

theories to predict or determine the level of anxiety in an individual.

A. TYPES AND SYMPTOMS OF ANXIETY

To give the right treatment aiming to decrease anxiety levels, an individual needs to know what

anxiety that he or she is suffering from and how it affects their lives. Psychologists have stated

that there are seven categories of anxiety disorders.

1. PTSD (Post-Traumatic Stress Disorder) –anxiety that comes after a traumatic event.

2. OCD (Obsessive Compulsive Disorder) –Feeling obsessed with something and have the urge

to do something before doing another thing. Patients with OCD thinks mostly that their life will be

in danger if they do not do what they think is important. Example: An OCD patient needs to wash

their hands 10 times before touching the doorknob.

3. Phobias –intense feelings or mostly fear of objects or events, animals, spaces, etc. It triggers a

thought of disasters, a belief where the worst things will happen.

4. Agoraphobia –fear of going out in public, fear of open spaces and or being in unfamiliar

situation and places.

5. Social Phobia –the feeling of shyness. Anxiety and fear develops by socializing, speaking in

public or going out with friends.

6. Panic Disorder –feeling of doom that causes both mental and physical symptoms that are very

intense. Panic disorders are causing panic attack that most of the patients will be hospitalized.

7. Generalized Anxiety Disorder (GAD) –This is the most commonly seen type of anxiety.

Millions of people around the world have had this kind of anxiety. It is an ongoing tension and

nervousness without a specific cause. Constantly, patients with GAD will feel on the edge,

worried, anxious or stressed.

Each of these anxiety types have their own symptoms that is why psychologists, up till today,

have covered approximately more than a hundred of symptoms overall. These symptoms are

affecting individuals physically after their thoughts affect their mental health. Generally speaking,

the most familiar symptoms of anxiety are shown in the picture.

Anonymous. (Composer). (2012, November 06). The Real Truth About Anxiety Disorder [Web Graphic]. Retrieved from http://www.diseasesymptomstreatment.com/anxiety-disorders.html/ -Graph 1.2

2.4 CORRELATION OF X AND Y

“Q: In the face of a wobbly economic recovery, when unemployment remains high, and the average worker's spirits remain low, it's clear that the stock market's foundation appears to be less than solid. From a "sanity" perspective, how does one cope with this constant flow of uncertainty and insecurity? A: Collective anxiety and increased tension go hand in hand with uncertainty. When individuals experience stress, they can slip into patterns of irrational behavior or thinking, rapid mood swings and highly unpredictable feelings.”

Kass, N. (2012, May 27). Coping with economic uncertainty. Huffington Post. Retrieved from http://www.huffingtonpost.com/noah-kass/uncertainty_b_1459861.html

Though it is mentioned that GAD is caused without specific reasons, slight events in life might be

the reason. There are lots of variables, which can cause GAD, but to be specific we will be talking

about the economic situation. Stated in the quoted article from Huffington Post above was: the

economic instability and uncertainty can cause anxieties due to tensions and worries. Thus, in the

world of economy there is another type of anxiety called Economic anxiety. According to

inverstorswords.com, economic anxiety is psychological state of worry and concern of an

individual towards the condition of the economy. This tends to occur when markets crash and

stays in a recession for period of time longer than expected. For consumers (mostly investors) the

graphic bellow shows the cycle of emotions collected due to changes or shifts in the economic

condition.

Journals about researches regarding the correlation between the economic situation and anxiety

levels have been done too by well-known psychologists and psychiatrists. The following quotation

emphasizes and evinces the actual relationship between recessions that occurs and the stress and

anxiety that comes along with. “Psychiatrists who read CURRENT PSYCHIATRY and were polled in March 2009 agree. Most were seeing an increase in patients experiencing psychological stress because of the recession, which by then had persisted 16 months. "All my patients are reporting increased stress as a result of the economic situation. The more successful my patient is, the more distress they seem to be feeling," says a psychiatrist from Melbourne, FL.” (Palmer, Rediger, & Kauffman, 2009) “Symptoms. Depression, anxiety, or both are the most common symptoms associated with patients' financial difficulties, survey respondents say. Other symptoms include insomnia, hopelessness, helplessness, loss of trust, anger, bitterness, resentment, suicidal ideation or attempts, numbness, desires for retaliation, increased alcohol/drug use, fear of being unable to afford medications or of losing a job, paranoia, and marital problems.” (Palmer, Rediger, & Kauffman, 2009)

There  is  such  thing  as  an  Economic  Anxiety.  People  might  not  see  it  as  a  serious  problem  in  

the   beginning   as   the   stimuli   develops   primarily   as   only   anxiety.   But   as   the   recessions   are  

held  up   to  a   longer   time   than  predicted,   then  anxiety  will  develop   to   the  next   stages  until  

depression.   “One   out   of   six   patients   with   depression   thinks   of   suicide”   (Leonard   Holmes,  

2003),  leading  us  back  to  the  fact  where  basically  anxiety  is  more  deadly  than  a  car  crash.    

Graph 1.3 Economic emotions

3. METHODOLOGY To prove my hypothesis and compare the similarities with the theory I have looked upon to, I

conducted a test research with a group of population. The method I use to obtain the data I’m

looking for is by distributing questionnaires to the parents of Senior High School students of

Victory Plus School and to several random adults. I distributed 95 question papers by using a

random sampling method. Below is questionnaire sample. I decided to write it in Indonesian

language to allow 100% respondents to understand. My concern is that if it is in English, not all of

the population understands fluently.

Graph 1.4 – IRP Questionnaire Sample

TABLE 1

TABLE 2

In the first table the answer value is: In the second table the answer value:

Sering (Often) 4 Ya/Yes 2

Kadang (Sometimes) 3 Tidak/No 1

Jarang (Rarely) 2

Tidak Pernah (Never) 1

3.1 CONDUCTING THE RESEARCH

Questions are divided into two tables, where table one indicates symptoms of anxiety from general

symptoms to specific economic anxiety in the last two questions. This is to obtain physical

evidences on whether or not the individual tested suffers from a hidden anxiety. While in the

second table, questions are in form of situational statements. As the cognitive perspective theory

has mentioned, when an individual is shown or told an event, they will react almost similarly to a

situation where they face the real event such as the story. By implying sentences showing variety

of events, I was hoping to have the same reaction, as they will react to real events by agreeing or

not agreeing.

I distributed the questionnaires by Thursday 30th of January 2014 and required my population to

give back the answered questionnaires to me by 4th of February, Tuesday, 2014. The feedback

percentage is 48.42% which means that from 95 distributed questionnaires, 46 were given back.

From the 46 populations, 6 were unemployed and the other 40 are employed.

Graph 1.5 –Employed population demography

INCOME  GROUPS   F   GENDER   FREQUENCY   KIDS   F  

a   <  5  mill   3   F   20   No  kids   5  

b   5-­‐10  mill   7   M   20   1-­‐3  kids   31  

c   >  10  mill   30   TOTAL   40   >4  kids   4  

Graph 1.6 –Unemployed population demography

INCOME  GROUPS   F   GENDER   FREQUENCY   KIDS   F  

a   <  5  mill   0   F   6   No  kids   1  

b   5-­‐10  mill   0   M   0   1-­‐3  kids   4  

c   >  10  mill   0   TOTAL   6   >4  kids   1  

The error that I’m willing to tolerate is 6% from 95 populations; with 90% confidence interval I

supposedly need 63 respondents. But due to lack of confidence of the respondents to the

questionnaires, only 46 responded, I was short by 17 people. My error margin level is 8.7% and

the calculation were obtained from such formula:

Hence through a margin of error level at 8.7%, approximately 4 data are inaccurate amongst 46

respondents. This approximately brings down the chance of 1 person out of 10 people gives an

invalid data.

3.2 ANALYSIS OF RESULTS

A. EMPLOYED RESPONDENTS RESULTS

Through this questionnaire I have obtained data that are represented in the graphs bellow. Graph

1.7 and 1.8 shows responds from the employed population. The series of answers are in codes

where Q1-Q8 are questions from the first table, from top to bottom on the questionnaire sheet.

Answer values are 1 for never and 4 for often. There is an exception for Q4 where it is stated

“Saya bisa tertawa terbahak-bahak (lepas)” or “I can laugh out loud (happily)” it’s answer value

is reversed where 4 is never and 1 is often. This is because amongst the questions in the table, Q4

has a positive connotation unlike the other seven questions connotes negatively. Thus reversed

value counts apply exceptionally. In the second table, questions coding are Qa-Qh from top to

bottom. Answer Yes values 2 and answer No values 1. The same terms and conditions apply the

same to graph 1.9 and 2.0 where the population of six, are unemployed.

Graph 1.7 –Error is calculated by the standard deviation of the population multiplied by the mean of population and divided by square root of the population.

Graph 1.7 –Responds for table 1 from employed population

In the given graph above, (graph 1.7) respondents are ones who have job and stable income up to

10 million rupiah, vary between men and women and also have families or somebody to be

responsible of. Modus for each question can be seen in the graph above. It is shown through the

dominant color within each bar in the bar chart. From the results I counted the rating scale of the

answers. Rating scale is needed to find out the average answer of the respondents. Rating scale are

calculated as such:

Where X is the frequency of the answer and W is the weight of the answer. Total is the total of the

respondents in the cluster (employed or unemployed).

From the formula above I have calculated and summarize the results as seen in the table below

(table 1.A). The most frequent symptoms of anxiety from this research shows body aches. Though

this evinces that respondents are tense, there is no significant evidence yet to prove the cause of

the tensions. The least felt symptom is to be sad without any reason. Being sad without any reason

is referring to GAD (General Anxiety Disorder). With NEVER being upset for no reason, I can

say that respondents does not suffer for severe GAD.

10  

4   5  

13  

3  

16  

15   13  

19  26   25  

6  

7  

13  

10   12  

9   10   9  0  

28  

4  

12   11  

Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8  

Often   Sometimes   Rarely   Never  

RATING SCALE = X1W1 + X2W2 + … + XnWn TOTAL

Questions  From  Table  1   Q   RESULT   RATE  

Hard  to  sleep  /  Sulit  tidur   1   Rarely   2.1/4  

Bad  dreams  /  mimpi  buruk   2   Rarely   1.9/4  

Uncomfortable  sleep  /  tidak  tenang  tidurnya   3   Rarely   2.0/4  

Can  laugh  out  loud  /  Bisa  tertawa  lepas   4   Rarely   1.6/4  

Upset  for  no  reason/sedih  tanpa  alasan   5   Never   1.3/4  

Body  ache/  badan  linu  dan  pegal   6   Sometimes   2.7/4  

Money  stresses  me/  uang  membuat  saya  stress   7   Rarely   2.2/4  

Worry  about  finance/  khawatir  akan  finansial   8   Rarely   2.3/4  Table 1.A –Results of rating scale from table one, employed population

B. UNEMPLOYED RESPONDENTS RESULTS

Graph 1.8 –Responds for table 2 from employed population

The same formula is used to count answers through the research both table one and two. I have

summarized the same as I did with table one through the research, to easily see the conclusion.

Below is the summary of table two. There are only two valid answers, yes and a no. The answers

vary and do not follow a specific pattern. This shows that answers are valid. Modus for each

question can be seen through the dominant color in each graph in graph 1.8. The most agreeable

situational statement in the second table is that respondents think that money is important. 85% of

the employed respondents answered yes, leaving the rate scale with the highest value; 1.9 out of 2.

30  20   24  

16  

32  23   22  

6  

0  5  10  15  20  25  30  35  40  45  

Q  a   Q  b   Q  c   Q  d   Q  e   Q  f   Q  g   Q  h  

Yes   No  

Questions   Q   Result   Rate  

Worries  or  fear  easily/  Mudah  takut/khawatir   a   No   1.3/2  

Is  happy  with  more  money/  Bahagia  banyak  uang   b   Yes   1.5/2  

Afraid  to  lose  job/  Takut  kehilangan  pekerjaan   c   No   1.4/2  

Afraid  to  have  no  money/  Takut  tidak  punya  uang   d   Yes   1.6/2  Economic  situations  tenses  me/  Situasi  ekonomi  membuat  tegang   e   No   1.2/2  

Fear  of  bankruptcy/  Takut  bankrut   f   Yes   1.4/2  Fear  of  monetary  crisis  in  98/  

Takut  krisis  98  terulang   g   Yes   1.5/2  

Thinks  money  is  important/  Uang  itu  penting   h   Yes   1.9/2  Table 1.B –Results of rating scale from table two, employed population

Graph 1.9 –Responds for table 1 from unemployed population

Graph 1.9 shows the responds and for each number the modus is vividly seen through the

dominant color, ranged the widest are the most answered answer. Table 2.A shows the summary

of results from the unemployed population. What differs from the employed population is that

unemployed respondents are able to laugh out loud SOMETIMES rather than RARELY in case

for employed respondents. This can showthat the more successful one is the more serious they get.

Unemployed force are RARELY upset for no reason which determines that they have had been

upset for no reason at least once in their lifetime. Employed respondents RARELY worry about

their financial problems while unemployed respondents SOMETIMES does.

1  

0  

0  

2  

0  

4  

1  

4  

2  

4  

2  

2  

1  

1  

4  

1  

2  

2  

3  

0  

4  

0  

1  

1  

Q1  

Q2  

Q3  

Q4  

Q5  

Q6  

Q7  

Q8  

Often   Sometimes   Rarely   Never  

Table 2.A –Results of rating scale from table one, unemployed population

Questions   Q   RESULT   RATE  

Hard  to  sleep  /  Sulit  tidur   1   Rarely   2.2/4  

Bad  dreams  /  mimpi  buruk   2   Rarely   1.7/4  

Uncomfortable  sleep  /  tidak  tenang  tidurnya   3   Rarely   1.8/4  

Can  laugh  out  loud  /  Bisa  tertawa  lepas   4   Sometimes   2.0/4  

Upset  for  no  reason/sedih  tanpa  alasan   5   Rarely   1.7/4  

Body  ache/  badan  linu  dan  pegal   6   Sometimes   3.0/4  

         Money  stresses  me/  uang  membuat  saya  stress   7   Rarely   2.0/4  

Worry  about  finance/  khawatir  akan  finansial   8   Sometimes   2.5/4  

Graph 2.0 –Responds for table 2 from unemployed population

100% percent of the unemployed respondent answered unanimously to question H. It is true that

money is important for them. Like the other graphs, graph 2.0 shows the answer frequency for

each situational statements (coded as Qa-Qh). Both employed and unemployed respondents agree

to answer YES to the last three statements, bankruptcy, crisis and thinks that money is important.

They tend to NOT be afraid to lose job because primarily they have no job to lose.

4  

3  

5  

2  

5  

2  

2  

0  

Qa  

Qb  

Qc  

Qd  

Qe  

Qf  

Qg  

Qh  

Yes   No  

Questions   Q   Result   Rate  

Worries  or  fear  easily/  Mudah  takut/khawatir   a   No   1.3/2  

Is  happy  with  more  money/  Bahagia  banyak  uang   b   Yes   1.5/2  

Afraid  to  lose  job/  Takut  kehilangan  pekerjaan   c   No   1.2/2  

Afraid  to  have  no  money/  Takut  tidak  punya  uang   d   Yes   1.7/2  

Economic  situations  tenses  me/    Situasi  ekonomi  membuat  tegang   e   No   1.2/2  

Fear  of  bankruptcy/  Takut  bankrut   f   Yes   1.7/2  

Fear  of  monetary  crisis  in  98/  Takut  krisis  98  terulang   g   Yes   1.7/2  

Thinks  money  is  important/  Uang  itu  penting   h   Yes   2.0/2  

Table 2.B –Results of rating scale from table two, unemployed population

4. CONCLUSION Through the research that I have conducted through December 2013 to February 2014, I have

come to a conclusion and an answer to my research question. The business cycle does affect the

anxiety level of an individual, though to a varied extent. This depends on each individual’s ability

to cope with situations. Each and every human in this world remains unique and are one of a kind,

born and raised through different experiences, thus the aptitude to adjust are different. The same

thing amongst the individuals from my respondents is that both groups; unemployed and

employed, thinks that money is important. 87% percent from the respondents decides to agree on

the statement.

The main concern from this research is regarding money. How individuals obtain money is by

having a job. These jobs are very much likely to rely on the stability of an economic situation.

Thus, as mentioned in the theory above when recessions occur, many jobs are no longer secure.

Financial instability does trigger the thought of fear that mostly develops into anxiety through

prolonging worries. I find my hypothesis to be proven from the answers that I obtained.

Especially, respondents’ answers in range of rarely to sometimes when are asked to agree on

worrying about finance.

Financial instability, due to whatever the cause is, will most likely to affect on a person’s mental

health. I have learnt that money is one of many factors in life that affects an individual’s mental

state. Though I must say, because emotions cannot be determined by a math formula, the specific

extent of money affecting one’s state of mind is not determined homogenously.

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