1-1 What Macroeconomists Study

in recent years, the inflation rate has been about ____ per year, indicating that prices have been fairly _____

2%, stable

real GPD is measured in _____ dollars and adjusted for ____

constant, inflation

a very severe recession

depression

a recession is a sustained period of _________

falling real income

measure of how fast prices are rising

inflation rate

the _________ measures the percentage change in the average level of prices from the year before

inflation rate

the unemployment rate is the percentage of those in the ____ who do not have jobs

labor force

the study of the economy as a whole

macroeconomics

the inflation rate measures the ____________ in the average level of prices from the year before

percentage change

the inflation rate is a measure of how fast ______ are ______

prices, rising

measured in constant dollars; adjusted for inflation

real GDP

3 important macroeconomic variables

real GDP, inflation rate, unemployment rate

_______ grows over time but this growth is not _____

real GDP, steady

a depression is a very severe ______

recession

sustained period of falling real income

recession

percentage of those in the labor force who do not have jobs

unemployment rate