This presentation introduces unemployment and inflation. It defines unemployment as when a person actively seeking work is unable to find a job. There are three types of unemployment: structural from technological changes, frictional from between jobs, and cyclical from recessions. Inflation occurs when prices rise and currency value falls over time, with the opposite being deflation. While inflation can increase wages and savings rates, it also increases costs of living and borrowing. There is an inverse relationship between inflation and unemployment as shown by the Phillips curve. The presentation concludes by noting there is a "natural" unemployment rate of 5% even during economic growth.

1. Welcome To My Presentation

2. I’m
MahbubAlahi
BBA 4th Batch
ID: 4-15010106
Notre Dame University
Bangladesh

3. Unemployment
&
Inflation

4. What is Unemployment ?
Unemployment is a situation when a person who is actively
searching for employment is unable to find work. Unemployment
is often used as a measure of the health of the economy. The
measure of unemployment is the unemployment rate.
Unemployment rate =
𝑁𝑜.𝑜𝑓 𝑈𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑃𝑒𝑜𝑝𝑙𝑒
𝑇𝑜𝑡𝑎𝑙 𝐿𝑎𝑏𝑜𝑟 𝐹𝑜𝑟𝑐ℎ
* 100

5.  Structural Unemployment
 Unemployment comes about through technological advances, when people lose
their jobs. For example, people lost his job as a cashier due to the creation and
use of self check out counters
 Frictional Unemployment
 Unemployment arises when a person is in-between jobs. For example; the job
search period, or trying to find the best fit for themselves.
 Cyclical Unemployment
 Unemployment comes around due to the business cycle itself. For example; during
the recession as businesses large layoffs created
Types of Unemployment ?

6. What is Inflation ?
Inflation is such situation when the price level of goods and
services rises, at the same time the value of currency reduces
over a period of time.
The opposite of inflation is deflation.

7. Effects of Inflation ?
Positive Effects
 Higher Wages
 Better Savings Account Rates
 Cheaper to Travel Abroad
 Reduced Unemployment
 Increasing personal savings
Negative Effects
 Stuff Costs More
 Borrowing Money Costs
More
 Reduces Employment and
Growth
 Decrease in the purchasing
power

8. Relation between Inflation
& Unemployment ?
There are inverse correlation
between inflation & unemployment.
The trade-off between inflation and
unemployment was first reported by
A. W. Phillips in 1958 by the Phillips
curve.

9. Cont…
 After all the effort implies, there 5%
unemployment remains.
 This unemployment is called NIARU.

10. Thank you…