Unemployment and Inflation. EVERYONE’S NIGHTMARE Chapter 6. Unemployment and Inflation. The two key concepts of Macroeconomics Either can destabilize the economy. When BOTH happen together – REALLY, REALLY BAD. STAGFLATION. Unemployment. People who are looking for work but have no jobs.
Not included in your book – but in most other Econ texts
Average Hourly Earnings are up $ .05 in February.
The INFLATION Indicators
Automatic increases in wages or other payments that are tied to a price index.
For Future Reference on contract negotiations: Called COLA.
I THINK you need and deserve more info on inflation!
Unemployment goes UP, then inflation goes DOWN.