[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.