Uploaded by Manik Islam Dumni

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Answer- There is a relationship between inflation and
Unemployment rate, Unemployment rate has a relationship
with labor force participation rate .we will see how the
relationship between labor force participation rate
,unemployment rate and inflation rate .
 For realistic information ,
 Here ,the table is showing the CPI . Labor force working
age population and unemployment rate of Bangladesh
from 2007 to 2012 are the given below:
Year
Labor force
(million)
Working age population
(million )
Labor force
Participation rate
2007
47.4
83.3
96.9%
2008
48.1
84.7
56.81%
2008
48.7
85.9
56.72%
2009
49.1
86.6
56.69%
2010
49.4
87.4
56.52%
2010
50
88.5
56.5%
 The unemployment rate is then calculated by dividing
the total number of unemployed by the total labor force
.The most obvious way is that unemployed persons find
a job and become employed .
 Labor force participation rate remains the some , while
the number of unemployed decreases and the number
of employed .
 Inflation rate
 The inflation rate is the percentage increase in the overall
level of the prices .
 Inflation rate = Inflation rate = [(CPI this year – CPI last
year)/CPI last year] × 100.
 The inflation rate of Bangladesh from 2007 to 2008. given
below the table.
Year
CPI
Inflation rate
2007
103.5
9.11%
2008
112.7
8.9%
2009
118.3
4.91%
2010
129.4
9.37%
2011
144.2
11.46%
2012
153.2
6.23%
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