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Understanding the output and input relationship allows us to analyze the “effectiveness of productive effort, especially in industry, as measured in terms of the rate of output (of goods, products, etc.) per unit of input (of labor, materials, equipment, etc.)”(ibid). Employment and unemployment are crucial when understanding the labor force within the macro economy and the retail industry environment. Inflation is significant to the economic system and occurs when the balance within the system has been swayed or when there is an “increase beyond proper limits; esp. of prices, the issue of paper money or an undue increase in the quantity of money in relation to the goods available for purchase; or an inordinate rise in prices” (ibid)...
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