MACROECONOMICS. The Big Picture. Goals of Macroeconomic Policy. Price Stability Economic Growth Full Employment. INFLATION. A sustained increase in the general price level as measured by the consumer price index (CPI) or the implicit price deflator (IPD).
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The Big Picture
A sustained increase in the general price level as measured by the consumer price index (CPI) or the implicit price deflator (IPD)
Interest rate = 5%
Inflation rate = 9%
Real Interest rate = -4%
16 to 65, able and willing to work, working or actively seeking work
Number of people unemployed
The rate of economic growth
Real GDP2 - Real GDP1
Two measures of the strength of the labor market are the unemployment rate and the change in nonfarm payroll employment.
Economic growth is the rate of change of Real GDP for a specific time period, usually a year.
Economic growth should be strong enough to generate employment but not so strong as to cause inflationMain Points