NUR HAZWANI BINTI ABDUL GHANI 2022996705 BA232 2E

a) INTRODUCTION

The topic that I choose for this reflective paper is Business Organization which is Economic
Stability. This topic consists of two subtopics which are inflation and unemployment. This
subject is related to me and my feelings because I need to know how the economic system
works. Furthermore, as I am a student in the business and management field, this subject is
crucial for me as well as can use in the future.

b) BODY

The concept of economic stability is uncertain due to its nature and it is subject to different
interpretations. Therefore, variability of policies having impact on economic stability can be
interpreted differently, (Ozpence, 2017). Economic stability is the condition where the amount
of money available in an economic system and the number of goods and services produced
are at the same rate. However, if the situation is reversed where the amount of money is more
than the actual output, then it shows that inflation has happened in the economic system.
Inflation also defined as the persistent increase in general price levels with adverse effect on
purchasing power of a unit of currency, inflation constitutes one of the core macroeconomic
variables of interest to key economic agents in the business environment, (Abaidoo &
Agyapong, 2022). Food inflation is also considered as inflation where this situation happens
when food items are to be exported in bulk quantity then domestic need will be affected, this
brings demand pull inflation, in which demand is more than total supply, (Qayyum & Sultana,
2018). This statement can be related to on 14 March 2022 this year, Russia decided
temporarily ban the export of wheat to ensure its food security due to food shortage.

Next, unemployment is defined as people who do not have job, or it occurs when a person
who is actively searching for employment is unable to find work, (Lasheen, 2019). Persistent
unemployment represents a direct threat to economic and social stability of any country that,
in turn, hinders its human and economic development, (Abouelfarag & Qutb, 2021). In addition,
when unemployment is low, there is a labor scarcity for businesses to hire. This situation can
be related to the increase in post-graduate unemployment in our country. Usually, a company
wants to hire an employee who has working experience. That answer the question of why
fresh graduates become a victim of the increasing rate of unemployment in Malaysia. Besides,
when the pandemic hit our country, many companies decided to lay off their employees due
to can't afford to give them their pay. This situation also can be the reason why the rate of
unemployment increased.

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NUR HAZWANI BINTI ABDUL GHANI 2022996705 BA232 2E

c) CONCLUSION

To sum up, this subject is related to me to how economic stability works. It also increased
my knowledge about the relationship between inflation and unemployment. In my opinion, they
complement each other as two of these factors are considered the engine of growth.
Additionally, I should understand what factors can keep economic growth this is because my
generation are who the one who govern the country in the future.

502 words
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REFERENCES
Abaidoo, R., & Agyapong, E. K. (2022). Commodity prices, inflation and inflation uncetainly among
emerging economies. Journal of Economic and Administrative Sciences.
doi:https://doi.org/10.1108/jeas-10-2021-0203
Abouelfarag, H. A., & Qutb, R. (2021). Does government expenditure reduce unmployment in Egypt?
Journal of Economic and Administrative Sciences, 37(3), 355-374. doi:https://doi-
org.ezaccess.library.uitm.edu.my/10.1108/JEAS-01-2020-0011

Lasheen, I. (2019). Unemployment At An Economic Glance. 2(2), 11-19. Retrieved from

https://www.researchgate.net/publication/338047739_Unemployment_At_An_Economic_
Glance
Ozpence, A. I. (2017). Economic Stability and Growth: The Case of Turkey. Research in Applied
Economics, 9(3), 41-63. Retrieved from
https://www.researchgate.net/publication/321939588_Economic_Stability_and_Growth_Th
e_Case_of_Turkey

Qayyum, A., & Sultana, B. (2018). Factors fo Food Inflation: Evidence from Time Series of Pakistan.
Journal of Banking and Finance Management, 1(2), 23-30. Retrieved from
https://www.academia.edu/39637724/Factors_of_Food_Inflation_Evidence_from_Time_Se
ries_of_Pakistan?auto=citations&from=cover_page