The Correlation Between Unemployment And Inflation

Both unemployment and inflation are two important components when it comes to studying an entire economy and it is also very easy to get those statistics from the Bureau of Labor Statistics (BLS) which is a governmental statistical organization that gathers, processes, analyzes, and broadcasts important statistical figures to the American public, the U.S. Congress, other Federal agencies, State and local governments, business, and labor. The Bureau Labor of Statistics also assists as a statistical resource to the Department of Labor, which main drive is to support, nurture, and improve the wellbeing of the labor force (All individuals ages16 and up, who are working or seeking employment), and retirees of the United Sates. The connection between unemployment and inflation has been a debatable subject, which has been discussed by economists all around the world for many years. However, it is this debate that has created the thinking about it. (Now that all of this was explained in deta il, let’s get to the main point. First, explaining the consequences, reasons and how unemployment is measured, and later doing the same with inflation). It is important to get a better understanding of these two terms, inflation and unemployment. Inflation refers to an increase in the average level of prices of any good or service inside an economy. In other words, means that you have to pay more money to get the same quantity of services or goods as you attained before. However, there’sShow MoreRelatedCorrelation Between Unemployment And Inflation1782 Words   |  8 Pagesmodel to check the impact of inflation and unemployment reactions to changes in the labor force in Switzerland using data from 1965 to 2010. Their overall, findings established that there exist long term equilibrium relations between the rate of labor force change and inflation rate. 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