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relationship between the inflation and the unemployment

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1) Inflation has been on the increase recently. Explain the impact of inflation on wage rates and employment

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Solution Summary

The relationship between the inflation and the unemployment level is presented.

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The relationship between the inflation and the unemployment level is depicted in the "Phillips Curve", which shows a negative correlation between inflation and unemployment. That is, periods with higher inflation tend to have lower unemployment, and vice versa.

In your case, you're asking about employment rather than unemployment. Assuming a constant working force, then lower unemployment ...

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