Question

Relationship between inflation rate and unemployment in india

Answer 1

Unemployment RateThe labor force is defined as the number of people employed plus the number unemployed but seekingwork. The unemployment level is defined as the labor force minus the number of people currentlyemployed. The unemployment rate is defined as the level of unemployment divided by the labor force.Inflation Rate DefinitionInflation refers to a general rise in prices measured against a standard level of purchasing power.Previously the term was used to refer to an increase in the money supply, which is now referred to asexpansionary monetary policy or monetary inflation. Inflation is measured by comparing two sets of goods at two points in time, and computing the increase in cost not reflected by an increase in quality.