The Federal Reserve System regulates the money supply to help keep the economy healthy. The goal is to prevent harsh inflation and to minimize unemployment because these conditions cause hardships for many people. Consider this situation: prices are rising noticeably. It seems like each time a person from your family comes home from the grocery store, he or she comments about how much food costs these days. You've also observed that the price of gasoline, clothing, and even things like movie tickets are going up faster than what you’re used to. What are some real ways this type of situation might affect you and your family? How would you be affected? Your response should be in a paragraph of no fewer than five sentences.

In a situation where the prices of all commodities are going up and the wages that the workers are receiving remain the same, it is going to be very difficult for the people in the economy to make ends meet. This is because, each family will requires at least twice the money they spend before to make ends meet and since there is no way of getting more money, some things will have to be left undone. Because of the increase in price, some companies may not be able to meet up again financially, when such companies close down, it will lead to increase in the number of people that are unemployed. How will these people take care of their family? Thus, if the situation is not arrested promptly by the government it will make the people in the nation to suffer greatly and this will probably increase the crime rate and the rate people move out of the country to look for greener pastures.

Explanation:

Edge 2020

compensation; complaints

explanation:

some employers provide "severance compensation" to employees whose employment has been terminated due to no fault of the employee

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