Inflation, Deflation, and Unemployment

Inflation, Deflation, and Unemployment — page 1
Economics an intimidating word for some is a social science science that studies how a society’s resources are shared The word economics describes and analyzes choices about the way goods and services are produced distributed and consumed It also assesses the consequences of those choices choices Economic activities devoted to satisfying the primary needs of food clothing and shelter are common to all human human beings Economic functions also satisfy people’s desire for goods and services that are not essential but that they choose to buy Such goods and services are often called luxuries luxuries but in most modern countries many luxuries such as automobiles television sets cell phones and visits to the dentist are nonetheless considered necessities The state of the worldwide national and local economies economies has direct effects on everyday people Inflation deflation deflation and unemployment are parts of an economy that affect how much things cost and how much people have to spend Imagine that one day you go to the store to buy your favorite snack which usually costs 1 49 You have the money in your pocket and can’t wait to dig in When you get to the cash register the total for your purchase is 2 29 Why does this snack suddenly cost more How will you be able to afford it if your allowance stays the same or if you lose your after-school job If the economy were going through a period of inflation inflation when you went to the store then that would explain 4 INTRODUCTION