Inflation and unemployment are probably, along with GDP, two of the most used economic indicators of how well a country is doing. Inflation measures increases in the price levels, which can hurt the economy in multiple ways when not under control. Unemployment measures the percentage of people in a country that, being able to work, are unemployed. Both are to be carefully measured, in order for governments to be able to keep them under control.
In this first Learning Path of our series on inflation and unemployment, we’ll learn about what these two concepts are, and how to tackle them.
Definitions:
Inflation, a continuous general rise in the level of prices;
Unemployment, what it is and how to measure it.
Government policies:
Economic policies, steps taken by governments to fix the economy;
Fiscal policy, when government uses public finances;
Monetary policy, when banks use special tools to kick-start the economy;
Supply-side policies, aimed at increasing the productivity of a country.
