What is the impact on inflation and unemployment?

Inflation can be defined as the overall change or increase in prices. There are several impacts of inflation on a country and its economy. The main impact is that it causes an economic downturn by causing a rapid rise in prices of products and services in the economy, making products unaffordable. Moreover, an economic downturn is caused by a decline in the production and consumption of products and services, causing a decline in GDP.

Unemployment can be defined as the lack or decline in work opportunities in a particular country. Unemployment can be caused by several factors, including economic decline and lack of skills in the available opportunities. Some of the effects of unemployment include an increase in people under the poverty line, a decline in consumption and per capita income when people lack jobs, the amount received per individual in each household decline, thus causing a decline in the rate of consumption of products and services in the economy.