There is a direct relationship between rates of unemployment and rates of inflationary growth?

There is a direct relationship between rates of unemployment and rates of inflationary growth. Explain how the relationship works, defining the different types of unemployment and the impact which the different costs of inflation can have upon an economy.

There is a direct relationship between rates of unemployment and rates of inflationary growth?bridge loan

The relationship is inversely proprotional.

See the %26quot;Phillips curve%26quot; explanation.

Couple cost of inflation include:

1 ) this is like a tax on savings ( the %26quot;value%26quot; of your savings decrease )

2 ) burden falls generally on consumers.

3 ) hurts real interest rate and hence growth.