Esprit Rock

Inflation and Unemployment affects our economy in terms of growth in various ways

Inflation and Unemployment affects our economy in terms of growth in various ways. Inflation for example can be categorized in segments to see how our economic growth is affected. When you look at investments in terms of inflation, if prices of goods where to rise do to inflation, people would have to spend more money having to use up what they have in savings, causing money to be less available and no longer being able to make investments. People are only willing to invest if they have enough money in savings to pay for the investment without affecting their daily needs.