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In economics, everything affects everything else, so you are trying to solve for the equilibrium. For example, high unemployment (not the only immediate effect)
by barumrho 3y ago
In economics, everything affects everything else, so you are trying to solve for the equilibrium. For example, high unemployment (not the only immediate effect) in turn will reduce consumption either directly due to loss of income or anticipation of it.
Traditionally, there is the Phillips Curve which states that unemployment and inflation have inverse relationship. https://en.wikipedia.org/wiki/Phillips_curve https://en.wikipedia.org/wiki/Phillips_curve