Macroeconomic - Essay Example

Inflation and its causes Inflation is a term which is related to the increase in the general prices of services & goods in the economy of a country with respect to time. It is usually measured as the percentage of the rate of change in the price index i.e. consumer price index and the producer price index. In a general term, it can be said that inflation drops down the value of a country’s currency, & this makes more difficult to but things & make the both ends meet. To keep a standard of living, it will be difficult to enjoy life more as spending more money will only result in less fruit.

Thus, a gradual decrease in the demand for various goods occurs, which directly affects the national economy. Because the inflation affects a nation as a whole, individuals & elderly are most affected. For sure due to increase in the prices, there would be lesser jobs available than before & thus the rate of unemployment is directly related to the inflation rate. There are several types of unemployments defined by the various economists, but the type of unemployment which is greatly affected by the inflation is the cyclic unemployment.

In the cyclic economic case, the number of the unemployed individuals exceeds the number of jobs available. Therefore, even if all the jobs are filled, still there would be a considerable amount of labor force left unemployed. Besides this, there are also some other causes other than inflation that leads to unemployment. What I learned while researching for writing this paper, is that it is the responsibility of the government to aid the unemployed citizens & provide them with some sort of work to keep them occupied & save the nation’s economy.

I realized the kind of pressure the politicians & the government leaders have to cope with. What I think now, is that no work is worthless if is giving you some sort of experience as well as a little something to spend. Sure it will be less in monetary values, but something is better than for sure. People who consider the honest work that pays little a joke, they turn up as thieves & buglers & in the end, they are pushed behind the bars. Just never lose hope & continue to work hard, have faith in yourself.

Grasp the first opportunity that lands in your lap & your honest hard work will be fruitful. It is always painful to be unemployed, even worse when anyone had acquired a good degree for earning & to have a better future. But if there are no or less resources available, the unemployment will definitely increase along with other disasters for the economy of a country. This pessimist situation can cause other problems in society too such as the crime rates will increase & people would consider themselves insecure & would not trust anyone.

High inflation rates are definitely a major cause for unemployment or it can rather termed as the opposite too, i.e., unemployment might be a cause of inflation.