Negative effects on macro economics unemployment

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Unemployment and Inflation
It is evident that although unemployment and inflation are known to have negative effects on macro economics unemployment has proved to be more hurting than inflation. Inflation is meant to distribute wealth to the borrowers from savers. The dilemma is that once there is high rate of unemployment there will be a decline of savings as people are not able to earn and there is an increase on numbers of those who need to borrow (Appelbaum Par 4). Inflation does reduce the real value of private and public debts and that`s the reason it is able to push most of the home owners into positive territory from negative equity back.
However, there is no any documented evidence on how inflation turns to be catastrophic in developed countries as opposed to developing countries and effects of increase on unemployment`s. If the interests rates increases people are able to tighten their belts with an aim of moderating inflation to hyperinflation. While, creation of inflation makes macroeconomics much difficult to manage with even with fiscal and monetary stimulation of the economy by the government by investing more in the economies, due to increased inflation. Consumer spending does increase and banks are not lending and at the same time there is reduction on income because of increased unemployment.
Unemployment`s does affect macroeconomics because costs of unemployment`s are high as most people do rely on their income to maintain the standards of living. Therefore, loss of Job does eventually affect the standard of living. While, on the other hand unemployment`s is harmful as it represent wasted human labor and productivity. Such high rate of unemployment would set up a cycle which would lead to more unemployment`s due to the fact there is less money which is being spent by consumers.
Aggregate Expenditure
Aggregate expenditure is meant to be used for measurement of national income. It is the current value of all services and finished goods in the economy. It is computed within a defined period which it constitute the sum total of all the expenditure incurred within the stipulated period. The expenditure being used for these calculations is what is incurred by planned investments such as savings, consumer goods expenditure and government expenditure to the economy. While, on some instances it also include the expenditure incurred between imports and exports within the same period.
Aggregate expenditure is the main method which is used for calculation of all activities which takes place in...