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Is there an important link between inflation and unemployment?

ÀÛ¼ºÀÚ: ¼±*
2021-10-06 285

ȸ¿ø´ÔÀÇ ¿µÀÛ¹®

First of all, we need to define what inflation is. Inflation is a general rise in the price level of an economy over a while. When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money which is a loss of real value in the medium of exchange. When companies cannot sell their goods and services, they try to hire a small number of employees to save their budget. In addition, they will not increase their salary. In case of inflation, the rate of unemployment will increase because the company saves the cost of operation. Otherwise, when the rate of unemployment will decrease, the salary will rise. People can earn money more than in the case of inflation and would like to spend money buying goods and services. The circle of the economy is rolling smoothly. I think both are linked to each other.

°­»ç´ÔÀÇ Ã·»è±³Á¤ ³»¿ë

Good work, Sun Jung! Your ideas were explained clearly! See you around!-Faith-
First of all, we need to define what inflation is. 
>> CORRECT
Inflation is a general rise in the price level of an economy over a while. 
>> CORRECT
When the price level rises, each unit of currency buys fewer goods and services. 
>> CORRECT
Consequently, inflation reflects a reduction in the purchasing power per unit of money which is a loss of real value in the medium of exchange. 
>> CORRECT
When companies cannot sell their goods and services, they try to hire a small number of employees to save their budget. 
>> CORRECT
OR When companies cannot sell their goods and services, they only try to hire a small number of employees to save their budget. 
In addition, they will not increase their salary. 
>> CORRECT
OR Furthermore, there will be no pay raise. 
In case of inflation, the rate of unemployment will increase because the company saves the cost of operation. 
>> In case of inflation, the rate of unemployment will increase because companies save the cost of operation. 
Otherwise, when the rate of unemployment will decrease, the salary will rise. 
>> Otherwise, when the rate of unemployment decreases, the salary rises. 
People can earn money more than in the case of inflation and would like to spend money buying goods and services. 
>> CORRECT
The circle of the economy is rolling smoothly. 
>> The cycle of the economy is rolling smoothly.
I think both are linked to each other.
>> CORRECT
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