Inflation_And_Unemployment

Inflation And Unemployment The relationship between inflation and unemployment is often taken to be one of the most reliable in macroeconomics. Everyone knows that rising unemployment means lower inflation, and falling unemployment means higher inflation. No single economic statistic attracts more notice or implies more about the well being of the social system than does the unemployment rate. The moral and economic waste brought on by recurring waves of unemployment has always been one of the principal reproaches directed at the system by its critics. Previously, to be without work was to be involuntarily idle, and unemployment tended to be seen as an individual matter rather than a social concern beyond the will of the persons involved. To be without work was more of leisure than what we would call unemployment today. Mass unemployment gradually came largely due to the pursuit of economic self-interest and an extensive division of labor. Apart from unemployment that is the result of an inadequate level of aggregate demand, important categories are frictional, structural, and seasonal unemployment. Structural unemployment is another cause that creates unemployment. As time goes on, consumer’s demand changes, which cause a growth in one industry, a decrease in another or it may lead to inflation, unemployment, workers, prices, rate, wages, phillips, job, labor, economy, curve, been, past, demand, low, economic, behavior, because, without, unemployed, market, industries, higher, goods, explain, expected, work, wage, structural, recent, rates, one, new, lower, likely