Question

What are some examples of inflation and unemployment in the time period of 2000 to 2010?

Answer 1

Inflation is the continuous rise in prices of goods and services. Some examples of inflation in the time period of 2000-2010 are:

(1) The rents in Los Angeles, United States increased from 4 % in 2000 to 5.4% in 2001, and it gradually increased to 6.4% in 2004 to 6.2% in 2007 and then it decreased to 1.7% in 2009 and the rent became lowest to -0.2% in 2010.

(2) The consumer food prices in the United States rose to 2.8% in 2000. There was higher inflation for food items such as bread, pork, beef, vegetables and lower inflation for food items such as fresh fruits.

The unemployment rate rises in times of recessions like for example the unemployment rate rose in the time period of 2008-2009 during the financial crisis and the unemployment rate falls in times of economic growth and prosperity.

(1) The unemployment rate in the US went up from 3.9% in 2000 to 6% in 2002 but then it gradually decreased to 4.4% in 2006 after which it increased to 7.3% in 2008 to 9.9% in 2009 and 9.3% in 2010 due to the financial crisis.

(2) The unemployment rate in Canada in 2000 was 6.8%, which gradually increased to 7.7% in 2002 decreased to 6% in 2007 and then after the financial crisis the unemployment rate started accelerating to 8.3% in 2009 to 8.1% in 2010.