Inflation is necessary and good for the economy.

I. It makes the trade industry in an economy livelier.

When talking about economy, it is a matter of perceiving the future and how it can leave an
impact to the present. Inflation, do not solely means increase in prices of the goods. It also caters
the concept of increase in money supply in the same manner price increases. It is a misconception
that when talking about inflation, it mirrors negativity because of the theory that price increases.
However, if prices of goods keep falling, it will certainly lead to a depression. If the market stops
responding to demand and stops buying goods and services now, it will surely leave businesses to
a decision to lay-off its workers because of the low demand and unnourished production. With
this, a new problem arises in the form of unemployment.
Inflation is a necessary good because it increases demand which in return, requires more
production to meet the said demand. As the production increases, the need for more employees
also increases. Thus, during inflation, people are more likely to get hired.
II. Good in terms of Debt/Mortgages

In some cases, Inflation is a burden for other people. However, for those who are fixed-rate
mortgage holders, Inflation is good. They benefit from higher inflation because they are going to
pay back their debt with devalued amount. Inflation allows debtors to pay lenders back with
money that is worth less than it was when it was originally borrowed. When a business borrows
money, the cash it receives now will be paid back with cash it earns later. Thus, inflation lets pay
lenders back with money that is worth less that is was originally borrowed it.

III. Inflation is in favor of the government.

Theoretically speaking, taxes are what enable the government to continue existing. It is
through tax that they are able to provide public services for the demand of the population. Also, it
is with the taxes that they continue supporting the expenses of the nation in general. In relation to
inflation, it is with the citizen’s income where they get these taxes. If inflation increases in a
controllable manner, wages for workers will certainly as labor workforce demand also increases.
Through graduated tax system, the higher the wages the higher the tax the government could get
to raise revenue for public funds.

Also, in connection to the former argument, Government is a larger debtor that is why an
unanticipated inflation benefits them because debtors repay creditors with those value that are
worth less when talking about of purchasing power.

IV. Phillips Curve Theory

Phillips Curve theory, developed by A. W. Phillips, is an economic theory stating the inverse
relationship of unemployment and inflation[ CITATION Jim19 \l 1033 ]. This theory can be seen
based on economic claims that with economic growth comes inflation, hand in hand. This theory
starts with the aggregate demand. When total amount of demand for goods and services produced
in an economy increases, labor demand also increases. It is a domino effect that businesses will
likely increase their production and will require them to hire more workforces for a wider
 production. Consequently, companies will increase wages to attract a smaller talent pool thus
passing the burden of increase in wages to consumers in the form of price increase.
It is somehow related to how inflation gives fuel to trade system. If trade is under our control and
in favour of us, it will surely increase demand in labor, decreasing the nation’s rate of unemployment. If
the population is doing well in employment, it will go back to benefiting trade industry, contributing to
nation’s real income that merely mirrors one’s economic growth.

Under-employed and Fully-employed Worker

In the given situation, the worker who graduated under the degree of Computer Science and
without any disability is the one we could consider as underemployed. On the other hand, the worker with
disability and also a graduate with a degree in Business Management is the one we could refer to as fully
employed.
Under-employed workers are those who don't use their full capability and skills to do a specific
job and since, the computer science graduate was able to do a job similar to what the person with a
disability can do, it is very obvious that the worker can do more. Looking into other factors to consider,
computer science graduates was able to do more than being an encoder such as software developer, web
developer and other related works. The person with disability was able to do the job using the best effort
and skill given the fact that there are certain factors that can slowdown the job that was assigned, this
didn't stop the worker to have an output similar to what a person without a disability can do.

Business Firm vs. Agriculture-20 hectares

We decided to build an Industry business in a 20 hectares’ lot, thinking that it will be build in an urban
land. There are a lot of advantages to gain employment in this kind of firm rather than to start an
agriculture business here’s the thing:

 Profitability speaking, there’s a lot of chance to gain investors in an Industry rather than
Agriculture if we are talking about locally. The Philippines has become a business hub for years
and continuously, we are accepting more innovations through business investment. Also, the
concept of seasons subjects Agriculture to a more possibility of being prone to unpredictable
risks and circumstances.

 According to Max Roser, “As the country develop, the share of population in agriculture is
declining”.

 More than 2/3 of our population are working in the Agriculture business, even the under-
graduate people they chose to work in the Industry such as transportation, shipping,
manufacturing co., construction and etc. because they know that the salary in the Industry
are fixed.

 There are a lot of departments in the Industry where they can hire a lot of workers.
 Industry is known as production of goods and services which are needed a lot of man-power.
(factories)
 Most of the Industry is built in the Urban and Agriculture to Rural.
Who among us which working to Industry will go to rural place and find a work in the agriculture
there.