[removed] Running Head: WEEK 4 1 6 Week 4 Milestone 2 Kristopher Warren Regent University Professor Bajah ECON 230 Macroeconomics 19 September 2022 How do inflation, unemployment, aggregate demand, and supply in the company’s key market (country) affect the company’s profitability? The relationship between inflation and unemployment was generally inversely proportional. Nonetheless, this relationship has been surprisingly skewed from the start, breaking up over various events over the past few years. Inflation and labor force (and unemployment) are perhaps the most tightly controlled financial indicators. So let us look at these relationships and what they mean for the broader economy. Inflation is the term used to describe the loss of control over money purchases over time. Thus, one cash unit is under-bought before the inflationary strain hits the economy. Economic analysts avoid unemployment when the number of working unemployed people exceeds the occupational stock of the labor force. Inflation and unemployment were generally inversely related. Government executive bodies rely on monetary and monetary strategies to keep the economy from overwhelming or pushing them back. The Phillips inflection shows that inflation and unemployment generally have an inverse relationship. Low unemployment is usually associated with an economic expansion, and high unemployment can lead to a decline or even collapse. Inflation fluctuates in the short term, with higher rates of expansion usually occurring during periods of prosperity or immediately following prosperity periods. For example, the most significant spurt of US economic expansion in the 20th century followed World War II and its wartime explosion. After that, the economy expanded again and fell sharply during the recession (McCausland, Summerfield, & Theodossiou, 2020). Expanded valuing for labor and products, including work, materials, and energy, can result from inflationary tension. Organizations will see an expansion in benefits if they can give these increasing costs to clients as higher costs for labor and products. Incomes from expansion are limited at a more special rate than benefits from day-to-day corporate tasks. This way, expansion not just misleads work, result, and speculation; it additionally puts these exercises over the long haul down. The connection among organic markets affects the net revenues of organizations with stock. Oversupply, as well as low interest, will bring about high stock costs for the business. At the same time, undersupply yet rather popularity would bring about the organization now and again running out of items and disturbing clients. Discuss the five transmission mechanisms (intertemporal substitution, uncertainty, irreversible investments, labor adjustment costs, time bunching, and network effe.

1. [removed]
Running Head: WEEK 4
1
6
Week 4 Milestone 2
Kristopher Warren
Regent University
Professor Bajah
ECON 230 Macroeconomics
19 September 2022
How do inflation, unemployment, aggregate demand, and supply
in the company’s key market (country) affect the company’s
profitability?
The relationship between inflation and unemployment was
generally inversely proportional. Nonetheless, this relationship
has been surprisingly skewed from the start, breaking up over
various events over the past few years. Inflation and labor force
(and unemployment) are perhaps the most tightly controlled
financial indicators. So let us look at these relationships and
what they mean for the broader economy. Inflation is the term
used to describe the loss of control over money purchases over
time. Thus, one cash unit is under-bought before the
inflationary strain hits the economy. Economic analysts avoid

2. unemployment when the number of working unemployed people
exceeds the occupational stock of the labor force. Inflation and
unemployment were generally inversely related. Government
executive bodies rely on monetary and monetary strategies to
keep the economy from overwhelming or pushing them back.
The Phillips inflection shows that inflation and unemployment
generally have an inverse relationship. Low unemployment is
usually associated with an economic expansion, and high
unemployment can lead to a decline or even collapse. Inflation
fluctuates in the short term, with higher rates of expansion
usually occurring during periods of prosperity or immediately
following prosperity periods. For example, the most significant
spurt of US economic expansion in the 20th century followed
World War II and its wartime explosion. After that, the
economy expanded again and fell sharply during the recession
(McCausland, Summerfield, & Theodossiou, 2020).
Expanded valuing for labor and products, including
work, materials, and energy, can result from inflationary
tension. Organizations will see an expansion in benefits if they
can give these increasing costs to clients as higher costs for
labor and products. Incomes from expansion are limited at a
more special rate than benefits from day-to-day corporate tasks.
This way, expansion not just misleads work, result, and
speculation; it additionally puts these exercises over the long
haul down. The connection among organic markets affects the
net revenues of organizations with stock. Oversupply, as well as
low interest, will bring about high stock costs for the business.
At the same time, undersupply yet rather popularity would bring
about the organization now and again running out of items and
disturbing clients.
Discuss the five transmission mechanisms (intertemporal
substitution, uncertainty, irreversible investments, labor
adjustment costs, time bunching, and network effects and
collateral damage) of the key market (country) and how it
affects the company's profitability.
The transmission System is the power that animates the

3. economy in all country areas.
Five transmission component
1. Intertemporal Substitution
It manages the allotment of the work season among recreation
and works to amplify prosperity. When the laborer decides to
consume recreation over work, then, at that point, the general
result created by the firm lessens. If the economy is confronting
a shock, this circumstance further invigorates on the off chance
that the specialist or business picks recreation overworking.
2. Uncertainty and irreversible investment
Vulnerability lessens the exhibition of the organization or
firms. There are a few irreversible speculations; for example,
financial backers will not be motivated to put resources into an
economy that faces vulnerability. In a dubious economy, the
profit from the venture will likewise be questionable because of
more significant changes in financing costs (Martins, Pires-
Alves, Modenesi, & Modenesi, 2017).
3. Labor adjustment cost
Work change cost is the expense that the organizations cause
for moving the representatives from low areas to exceptionally
developing areas; This would be undeniably challenging for the
firm assuming the economy is confronting the shocks. On the
off chance that this cost is higher, the firm enrolling cost will
increment, and the benefit of the firm will diminish.
4. Time Bunching
The monetary exercises are to be composed at a specific time
given the economic business cycles. When there is a blast in the
economy, the organizations will rise, and benefits will rise; the
inverse happens when there is a downturn in the economy.
Subsequently, the benefits are impacted when given the
business cycle.
5. Network effects and collateral damage
This is an effect because of changes in the worth of the
resources. At the point when the worth of a resource that is
vowed for credit (i.e., Security) lessens because of a few
financial changes in the economy, then this will cause blow-

4. back and diminishes the productivity of the economy; This
happens because of a decrease in the worth of the guarantee, the
loaning limit diminishes, and future credit accessibility lessens,
and this will decrease the venture, which like this reduces the
benefit to the economy (OnurPolat & IbrahimOzkan, 2019)
References
Martins, N. M., Pires-Alves, C. C., Modenesi, A. d., &
Modenesi, A. d. (2017). The transmission mechanism of
monetary policy: Microeconomic aspects of macroeconomic
issues. Journal of Post Keynesian Economics, 300-326.
https://doi.org/10.1080/01603477.2017.1319249
McCausland, W. D., Summerfield, & Theodossiou. (2020). The
Effect of Industry-Level Aggregate Demand on Earnings:
Evidence from the US. Journal of Labor Research, pp. 102-127.
https://doi.org/10.1007/s12122-020-09299-z
OnurPolat, & IbrahimOzkan. (2019). Transmission mechanisms
of financial stress into economic activity in Turkey. Journal of
Policy Modeling, pp. 395-415.
https://doi.org/10.1016/j.jpolmod.2019.02.010