Unemployment And The Rate Of Inflation - 1673 Words

Unemployment and the rate of Inflation are two main problems faced by most economies around the world. Lower rates of each are sought after in order to create and maintain a more stable economy. Unemployment rate can be officially defined as a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force. The inflation rate is the percentage rate of change of a price index over time. The Retail Prices Index is also a measure of inflation that is commonly used in the United Kingdom. It is broader than the CPI and contains a larger basket of goods and services. By obtaining data for two countries, UK and France, on unemployment rate and CPI, which allowed me to calculate inflation rate and then further the change in inflation rate, I have been able to construct the table above. This table clearly shows the comparison between the two countries between the time period of 1970-2013. From this table I am able to create graphs to represent the data in an aesthetically pleasing format - a picture says a thousand words. Firstly I will begin by discussing the unemployment rate graph. This line graph represents the comparison of the changes of unemployment rate data from 1970 -2013 for the countries France and United Kingdom. At 1970 France s unemployment rate remains consistent for 4 years while the UK s rises slightly however generally during the 1970s theShow MoreRelatedRelation Between Inflation Rate and Unemployment1776 Words   |  8 PagesEurozone unemployment and inflation both rise 01 March 2012 by Daniel Mason Eurozone unemployment rose to a record high in January, while inflation in the currency bloc has also continued its upward trend - a combination described by economists as unpalatable and a double whammy of bad news. The jobless rate in the 17-member currency bloc was 10.7 per cent in January, up from 10.6 per cent in December, according to statistics published today by Eurostat. It means that, in January, thereRead MoreRelationship between Inflation Rate and Unemployment in Malaysia1110 Words   |  4 Pagescomprise of inflation rate and unemployment rate in Malaysia. Conclusion and discussion on the study, policy implication, limitation of the study and suggestion for future will be discussed in this chapter generally. 5.1 Conclusion This chapter is the conclusion and recommendation about the whole research regarding relationship between inflation and unemployment rate. It also concludes the whole result of the research and some recommendation for the further research. Inflation and unemployment of TheRead MorePhillips Curve : A Relationship Between The Inflation Rate And The Unemployment Rate Essay3200 Words   |  13 Pagesoverview The Phillips curve represents a relationship between the inflation rate and the unemployment rate. The Phillips curve is named after its first exponent A.H.W. Phillips who was a classical economist who first came up with this relationship. He posited that the lower the employment rate firms are forced to source for funds so as to increase wages and be able to attract labour. This in turns leads to a rise in money wage inflation. The first challenge to this theory was by Milton Friedman andRead MoreThe Existence Of Trade Off Relationship Between Inflation Rate And Unemployment1839 Words   |  8 Pagesexistence of trade-off relationship between inflation rate and unemployment rate in Namibian economy between 1991 and 2014 the perspective of Phillips curve by using the Ordinal Least Square (OLS) method. 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