Question

How does the role of inflation affect decisions that you have to make? What is the unemployment rate in your local area and in your state? How does this compare to the national average and why is this rate so important to evaluate?

Answer 1

Inflation is referred to the situation when price for the product rises to its peak. Now the rise in price will directly or indirectly affect the consumer, because of which our day to day decisions are affected. As we know a rational consumer buys the product depending upon its price. Now when the price will rise the demand of the consumer will obviously fall and hence he will buy less.

The unemployment rate defines us the rate of people who are not employed. It is the percentage among the total population who are eligible to work but do not have work. This ratio is important to calculate the national average as the national average includes the gross domestic product of the employed workers and hence it is important to calculate the ration of unemployed