what is the relationship between employment rate and inflation?
In: Economics
money becomes less valuable, this means that the price for an product increases.
For people who don’t get a raise to compensate inflation, they spend less since everything is more expensive.
Decrease in sales may lead to some companies to cut loses.
This includes in lowering employment rate since there is less money in reserve for salaries.
Mind you that i am generally speaking. Real world economy is more complex and corrupt when we are talking about inflation.
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