The number of people unemployed is the number of people in the country who are out of work and who are available for work at current market wage rates. This can easily be changed to a percentage by relating the number of people unemployed, to the total number of people in the labour force.
Inflation is the general increase in prices over a 12 month period. This is measured by taking weighted averages of all consumer products (weighted on the frquency of purchase) and analysing the trend of overall prices. This is often called the Consumer Price Index (CPI) or Harmonised Index of Consumer Prices (HICP). This shows how much, as a percentage, the general price levels of all consumer goods have changed over the year.
The two have been analysed together using the Phillips curve which shows the rate of inflation plotted against the rate of unemployment.
Some other key terms you might find useful (try these in wikipedia maybe): Phillips Curve, Keynesian economics.
Hope this helps
Inflation and unemployment are inversely related.
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
When economists look at inflation and unemployment in the short term, they see a rough inverse correlation between the two. When unemployment is high, inflation is low and when inflation is high, unemployment is low. This has presented a problem to regulators who want to limit both. This relationship between inflation and unemployment is the Phillips curve. The short term Phillips curve is a declining one. Fig 2.4.1-Short term Phillips curveThis is a rough estimation of a short-term Phillips curve. As you can see, inflation is inversely related to unemployment. The long-term Phillips curve, however, is different. Economists have noted that in the long run, there seems to be no correlation between inflation and unemployment.
Which was the decade of high inflation and high unemployment
In economics it's the inverse relationship between inflation and unemployment.
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
When economists look at inflation and unemployment in the short term, they see a rough inverse correlation between the two. When unemployment is high, inflation is low and when inflation is high, unemployment is low. This has presented a problem to regulators who want to limit both. This relationship between inflation and unemployment is the Phillips curve. The short term Phillips curve is a declining one. Fig 2.4.1-Short term Phillips curveThis is a rough estimation of a short-term Phillips curve. As you can see, inflation is inversely related to unemployment. The long-term Phillips curve, however, is different. Economists have noted that in the long run, there seems to be no correlation between inflation and unemployment.
Which was the decade of high inflation and high unemployment
In economics it's the inverse relationship between inflation and unemployment.
no
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
The Phillips Curve is an inverse relationship between the rate of unemployment in an economy and the inflation. The lower the unemployment is, the higher inflation we get! Thus we can say that the Phillips Curve is negative (downward sloping)
Changes in wages imply changes of inflation in Singapore or most other countries. The Philips curve shows how inflation and and unemployment is related.
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
yes true
positive
Anne Romanis Braun has written: 'Inflation and unemployment in Canada and other industrial countries' -- subject(s): Effect of inflation on, Inflation (Finance), Unemployment