Unemployment and inflation

The two major problems facing the economic development of every country are a high unemployment rate and a significant rise in inflation for a prolonged period of time.

1. One of the benefits of unemployment is that it enables a higher quality job search and promotes economic efficiency, but increases the unemployment rate and creates economic recession.
2. Unforeseen high inflation redistributes society's income, diminishes the ability to make long-term plans, and forces individuals, government, and businesses to carefully assess the purchasing power of their assets.

• Provides an analysis regarding the relationship between the unemployment rate and economic growth in a country.
• Provides an analysis regarding the relationship between the inflation rate and economic growth in a country.
• Comment on the two expressions presented at the beginning and the possible relationship with particular situations that affect the economic development of a country.