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Inflation and unemployment are seen as results of demand. They're both regarded as effects. One isn't the cause of the other. At least in most economic theory.
by Intermernet 7mo ago
Inflation and unemployment are seen as results of demand. They're both regarded as effects. One isn't the cause of the other.
At least in most economic theory... Which is possibly not the best theory to put much weight in, considering how changeable and unproven it is.
- tonyedgecombe 7mo agoNo but they are inversely correlated. As you bring inflation down you expect unemployment to rise.