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Unemployment and Inflation.
Unemployment is very closely related to the business cycle. As well as experiencing fluctuations in unemployment, most countries have experienced an increase in average unemployment rates from one cycle to another. Unemployment occurs when people are actively looking for jobs but can't find one. The most common definition of unemployed people is those of working ages who are without work, but who are available for work at current wage rates.
Measurement of unemployment:
Unemployment is measured by the following formula:
Unemployment rate = unemployed/ labor force * 100
Before applying thi…
- How are automatic stabilizers used to combat inflation
- How inflation and unemployement are related.
- Unemployment and Inflation.
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