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What is the relationship between inflation and unemployment?
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[QUOTE="Good-Guy, post: 207343, member: 29109"] Inflation and unemployment have a really deep connection with each other and most of the people in world should try to understand the root cause of the condition in order to find solutions. Whenever the inflation rises, it affects businesses in a really horrible way. As a result of inflation, the prices rise and the businesses have a really harder time retaining employees. Cutting the production cost is not always that easy as this results in many companies facing economical problems in business. Whenever the inflation hits a country, the sales of specific items decrease and this might result in financial losses. When the companies are not able to deal with such losses, they usually suffer from huge losses and even go bankrupt as a result. An employee is dependent on the company's financial success in order to secure his job. If a company itself is not able to maintain itself, then how can it provide job guarantees to its employees? Inflation is also negatively effecting many developed countries, including the United States. usually, inflation rises quicker than people's raise in pay. This is exactly what is happening in the United States, as some organizations such as [B][I]The New York Federal Reserve[/I][/B] suggest. We all need to fight this big issue. [/QUOTE]
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What is the relationship between inflation and unemployment?
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