What are some of the problems, difficulties, or hardships caused by unemployment?

Two of the biggest issues in macroeconomics are inflation and unemployment. Policymakers would like to keep both measures low. Often, however, there is a trade-off between the two. A strong economy that lowers unemployment can put upward pressure on prices. A weak economy that lowers inflation can increase unemployment.
Before the COVID-19 pandemic, we had both very low unemployment and inflation. Then unemployment rose. In the future, unemployment and inflation could change, and it’s good to have policy plans in place before either of these problems gets too bad.
Imagine that you oversee macroeconomic policy. Start your discussion by responding to these questions and explaining your answers:
What are some of the problems, difficulties, or hardships caused by unemployment?
What are some of the problems, difficulties, or hardships caused by inflation?
If you had to choose today between a policy that would head off increases in inflation or increases in unemployment, which one would you choose?
Be sure to respond to at least one of your classmates’ posts and share your opinion about their decision.

Peer: Tyler

Hello Class,

Recessions happen in every economy and when they do many people become unemployed. They say money can not buy happiness, however it is very necessary to survive. Many who become unemployed end up suffering beyond loosing their job. Themselves and their family deal with much mental anguish as they watch their hard earned savings dwindle and stress builds in their financial responsibilities. Inflation has similar difficulties. The pressure for prices to rise in the economy is how inflation comes to be. Inflation effect not only goods and services but income as well. I belive that the majority of people effected is higher concerning inflation than unemployment. I would focus policies on inflation control as this will help stabilize the economy and reduction the likelihood on another recession helping unemployment as well.

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