Analysis of Macroeconomic Challenges: Unemployment and Inflation

This report provides an in-depth analysis of the macroeconomic challenges of unemployment and inflation. It begins with an introduction and overview, defining unemployment and inflation and outlining the issues to be discussed. The report examines the trends and current statuses of both unemployment and inflation rates over the past ten years, providing data and graphs to illustrate the changes. It delves into the challenges associated with unemployment, such as deflation and the impact of education and cultural factors, and explores the causes and consequences of high inflation. Furthermore, the report discusses potential solutions, including expansionary monetary and fiscal policies, to address these macroeconomic issues. The report also includes references to relevant literature to support its findings and recommendations.

NAME MACROECONOMIC
CHALLENGES: INFLATION &
UNEMPLOYMENT
TITLE OF PROJECT
YOUR NAME
THE NAME OF THE CLASS
THE DATE OF SUBMISSION

INTRODUCTION/OVERVIEW
• Unemployment and inflation are the macroeconomic variables
selected for this presentation
• Unemployment takes place whenever an individual who is actively
seeking for unemployment remains unable to get a job/work.
• Inflation is the general rise in prices of commodities and services
• Issues to be discussed include the trends and current statuses of
unemployment and inflation rates over previous 10 years

UNEMPLOYMENT:
TRENDS AND CURRENT STATUSES
• The unemployment rate as gradually decreased in the past
ten years
• The decline began in 2008 where it was 7.3% and surged to
9.9% in year 2009 (worst due to recession)
• After 2009, the unemployment rate began to reduce
gradually to the 3.7% rate in September 2018 (Kennedy &
Prag, 2017)

INFLATION:
TRENDS AND CURRENT STATUSES
• The rate of inflation ranges between 4.5% and 5.0% currently from
the 3.85% in year 2008 (Janda, Berry, Goldman & Deborah, 2015)
• FED puts the inflation rate at 2% because it is both riskier when
extremely low or high
• Inflation dropped in year 2009 -0.34% (deflation) due to inability of
people to buy at initial cost
• Inflation rate has gradually remained stable within target range of
3.1% and 0.12% within the past 10 years

GRAPHS ILLUSTRATING INFLATION AND
UNEMPLOYMENT TRENDS

CHALLENGES/ OPPORTUNITIES
• The challenges of unemployment include deflation where people cannot by goods
• High rates of unemployment have also been caused by inability to get well-
educated people
• High rates of unemployment are also cultural-based due to stereotypes against
women and racial discrimination
• High prices for labor and raw materials also cause high rates of unemployment
• High inflation results from increased national debt, cost-push effect and demand-
pull effect

CONCLUSION
• Issues of unemployment is solved by creating new jobs
• Expansionary monetary policy to have low interest rate for
borrowing and investment (Gillespie, 2016)
• Expansionary fiscal policies during recession through tax cuts
and increased government expenditure

REFERENCES
• Gillespie, A. (2016). Foundations of Economics. New York, NY:
Oxford University Press.
• Janda, K., Berry, J. M., Goldman, J., & Deborah, D. (2015). The
Challenge of Democracy: American Government in Global Politics.
Boston, MA: Cengage Learning.
• Kennedy, P. E., & Prag, J. (2017). Macroeconomic Essentials:
Understanding Economics in the News. Cambridge, MA: MIT Press.