Economics: rising raw materials cost and unemployment?

Would the rise in raw material costs increase the rate of unemployment and why?

Economics: rising raw materials cost and unemployment?

while it becomes more expensive for production, there is a supply-side inflation, and the SUPPLY curve SHIFTS to the left. this means a MOVEMENT along the DEMAND curve (draw it out if you dont get the idea).

the aggregate demand and supply curves are measured on the vertical axis of price level and horizontal axis of real gdp. with a decrease in AS, this means higher equilibrium price level and also less gdp produced, which means less employment of workers.

Economics: rising raw materials cost and unemployment?

loan

Yes but only temporarily while the employee retrains for another job related to a different material. Example: When ivory came into short supply, billiard ball carvers were reduced. When Bakelite replaced the ivory the carvers became casting machine operators.