Question

Which problem do you believe is more serious: unemployment or inflation? Explain your answer.

Answer 1

Inflation is the general increase of prices for the economy as a whole and the decrease of purchasing power over time. One product increasing in price is not inflation, but rather it is the price of the consumption bundle of all goods and services in the entire economy increasing. Unemployment is when people who can work have no paid job.

Answer 2

Answer:

Inflation is the general increase of prices for the economy as a whole and the decrease of purchasing power over time. One product increasing in price is not inflation, but rather it is the price of the consumption bundle of all goods and services in the entire economy increasing. Unemployment is when people who can work have no paid job.