Explain how inflation and unemployment impose costs on individuals and government.

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06-03-2021
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Explain how inflation and unemployment impose costs on individuals and government.

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francocanacari francocanacari · Answer 1 · 2021-03-10T21:06:26-05:00

Answer:

Inflation is an economic process by which the prices of goods and services offered in the market rise constantly and gradually, with which the population loses purchasing power, while its money acquires fewer and fewer resources.

In turn, unemployment is the lack of a formal job that gives the individual an income with which to pay for their survival expenses.

Thus, both unemployment and inflation negatively affect the economy of individuals, with which they imply a cost for governments in terms of social assistance aimed at alleviating these economic inclemencies.

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