isnt the higher the inflation, the higher the employment.
Positive relationship??
2006-09-06 17:40:31 · 3 answers · asked by BBMak 2 in Business & Finance ➔ Other - Business & Finance
correct in theory.
when employment is high, peeps can demand higher wages (or find higher paying jobs), driving up wages, and eventually prices (inflation). When employment is low, many people take what they can get for work, so there is little upware pressure on wages, and eventually prices.
more info:
http://en.wikipedia.org/wiki/Keynesian_economics
2006-09-06 17:54:31 · answer #1 · answered by Stanley 3 · 0⤊ 0⤋
Inflation tends to drive up wages, so that might drive up employment.
2006-09-07 00:47:29 · answer #2 · answered by BluedogGirl 5 · 0⤊ 0⤋
Correct in theory, but nowaday, employer used machinery or automation to drive down cost
2006-09-07 01:11:58 · answer #3 · answered by Hoa N 6 · 0⤊ 0⤋