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Inflation And Unemployment:
Inflation describes a persistent and an appreciable increase in the general price level. The inflation rate is measured as a percentage change in a price index, such as the consumer price index.Demand Pull Inflation describes a sustained increase in the general price level that is caused by a permanent increase in nominal aggregate demand. Cost Push or Supply Inflation is a situation where the process of increasing price level is caused by increasing costs of production which push up prices.Unemployment refers to a situation where who are willing and able to work do not find jobs at the existing wage rate. For a person to be referred to as unemployed he or she must be qualified for a job, willing to work at the current wage rate and unable to find a job.
In the short run, the size of the plant is fixed whereas in the long run a firm can adjust its plant size. One of the choices in the long run will be the short run plant size. That
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