In the next 5-10 years, the macroeconomic variables that corporate
financial managers should prepare for are inflation and
unemployment. Currently, the inflation rate is on an increasing trend.
According to the Phillips Curve, it hypothesizes that there is a
correlation between inflation and unemployment. Tretina (2021)
states that when inflation is high, unemployment is low or vice versa.
The inflation rate is expected to decrease in the next 5-10 years.
Inflation and unemployment play a significant part in a business.
Inflation causes business to increase prices on their products to be
able to keep up with the rising prices and labor expenses.
Unemployment rates are low, so that means that businesses are at
fully staffed rates.
Overall, inflation has huge part in everyones life. In some cases,
business do not provide an adequate increase in wages to employees
for them to be able to keep up with inflation rates. I would
recommend for everyone to try and budget as much as they can.
Inflation And Unemployment – Forbes Advisor
. (n.d.).
Www.forbes.com.
https://www.forbes.com/advisor/investing/inflation-and-
unemployment/#:~:text=The%20Phillips%20Curve%20hypothesizes
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