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What Is One Example of a Negative Feedback Loop

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What is one example of a negative feedback loop?


Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for work.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation.

Central Bank

An institution that manages a country's currency, money supply, and interest rates, oversee the commercial banking system, and provides financial services to the government.

Unemployment Rate

The percentage of the labor force that is jobless and seeking employment, used as an indicator of the economy's health.

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