Weekly journal Essay Example | Topics and Well Written Essays - 250 words - 3

Weekly journal - quiz Examplehe recessionary face of the economy when the businesses atomic number 18 suffering losses and a dissolver of these losses they decrease their labor force which results in growing in the rate of unemployment (Krugman 144). Due to increase in unemployment, those who lose their jobs buy less goods and services and their disbursement mostly focuses on fulfilling their necessities and they stop spending money on luxurious goods and services. Another subject that has been discussed in the chapter is largeness which is a term utilize to denote the continuous increase in the prices of goods and services (Krugman 151). Increase in the inflation rate at one point in time leads to decrease in the ability of the consumers to purchase goods and services. Due to this they are able to purchase less goods and services in a given time period as compared to the previous time period when the rate of inflation was low. The chapter states that the government has to int ervene to solve the counter inflation and increase the living standards of its