Why does inflation rise as employment rise?
Why does inflation rise as employment rise? And why does unemployment rise as inflation falls?
Thank you!
Posted from TSR Mobile
Thank you!
Posted from TSR Mobile
There is a million different answers, but probably the 'text book' one is;
When more people are employed, more people have money, demand rises for products and buyers are prepared to pay higher prices.
The exact reverse happens with deflation and unemployment. Unemployment doesn't fall as a result of deflation.
When more people are employed, more people have money, demand rises for products and buyers are prepared to pay higher prices.
The exact reverse happens with deflation and unemployment. Unemployment doesn't fall as a result of deflation.
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