Refresher on Macroeconomic Measurements and the Business Cycle
Introduction
This chapter reviews the importance of some of the main macroeconomic indicators. Some of the main macroeconomic measurements include inflation, unemployment, interest rates, and gross domestic product (GDP) along with the GDP components. The business cycle is also a key characteristic of macroeconomic performance. Additionally, this chapter discusses Okun’s law, which expresses the inverse correlation between unemployment and GDP.
Inflation
The inflation rate is the average percentage rate of change in prices during a time period, such as one year. The Bureau of Labor Statistics (BLS) estimates various types of inflation. Three common measures of inflation ...
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