Question

Analyze how a fall in unemployment may cause inflation [6]

Answer 1

Answer:

The relationship between inflation and unemployment has traditionally been an inverse correlation. However, this relationship is more complicated than it appears at first glance and has broken down on a number of occasions over the past 45 years.1 Since inflation and (un)employment are two of the most closely monitored economic indicators, we'll delve into their relationship and how they affect the economy.