Inflation

Inflation Course: Economics 201 Objective: The effect of inflation on the job market Date: 05 - 05 - 2003 The Effects of inflation on the Job Market In the major industrial countries, low unemployment usually creates inflationary pressures. But during the recent economic expansion in the United States, prices have held steady despite low unemployment. Inflation is generally defined as an upward directional increase in the average of prices. Most people tend to be concerned about it because it reduces the purchasing power of the income earned by households. Though a few exceptions most commodities accentuate to this general assumption, all other things being equal. On the contrary the job market is a database of positions available for either a specific profession or the pool of potential applicants nation wide. With the use of visual aid and extensive explanations I will relate the connection between inflation and the Job market in America. Inflation is caused by increasing the quantity of money used in purchasing a fixed amount of goods. This could also happen by reducing the number of goods available for a fixed “nominal” amount of money. On both sides money is subjected to it’s intrinsic relevance. Meaning peoples expectation of return varies when tendering a inflation, job, market, low, labor, expected, wages, wage, prices, curve, workers, united, unemployment, states, phillips, minimum, illegal, available, years, rates, past, money, likely, immigrants, however, hourly, higher, factors, explain, 1990s, work, university, uncertainty, think, survey, since