Question

What happens when an economy faces both high unemployment and inflation?

Answer 1

Answer:

Its very bad and one of the worst conditions a country needs to face these problems.A country's economy makes its backbone strong and represents it strength to outer world.

Unemployment is caused due to lack of jobs and opportunities,leads to fall in economy and earnings of the country.

Inflation is the increasing of costs and prices which leads to lot of chaos in the market and society.

And if both of these occur together then its very bad for the country because already the person is out of job and rates are also growing high.

This will lead to fall of country's gdp and other status at the door of other countries.