Question

AP Human Geography Help

Answer 1

Answer:

Two forces that affect the economic stability of cities are unemployment and inflation.

Unemployment is rate of people available for and looking for work, but without a job. In turn, inflation is the constant increase in the prices of goods and services during a certain period of time.

Both variables negatively affect the economic stability of cities, since, on the one hand, unemployment limits the productive capacity of the city and causes less money to circulate in the internal economy, limiting the population's consumption capacity and therefore hence the income of the city's companies.  In turn, inflation causes a rise in prices that limits the consumption possibilities of the population, as each individual needs more money to acquire the same goods.

Both problems have a direct correlation with the population increase in cities: unemployment because an excessive increase causes an excess of people looking for work in a market that does not adapt to this need; and inflation because the higher the demand for the products, the higher the price of them.