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A high rate of unemployment will affect  customers as the quality of service will decrease because of the amount of employees.

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Inflation refers to the sustained or considerable rise in the general price level of goods and services over a period of time. Inflation is characterized by low purchasing power as with an increase in the prices, few goods and services can be bought from each unit of the currency.

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The term economic climate refers to the general state of the regional, national, or global economy. Economic climate usually reflects the state of the jobs market, stock market, or the availability of credit. It also reflects how consumers view economic conditions. The economic climate in this country will change as people age.

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Effects of interest rates on the economy

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Effects of interest rates on the economy

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When consumers pay less in interest, this gives them more money to spend, which can create a ripple  of increased spending throughout the economy. Businesses and farmers also benefit from lower interest rates, as it encourages them to make large equipment purchases due to the low cost of borrowing

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When someone is made redundant a family is affected. When a group of people lose their jobs, the nation is affected. Workers lose income and the country loses production and consumer spending. With such a strong impact , the unemployment rate is a key way to measure the state of the economy.