Overview
Macroeconomic stability analysis is essential for understanding the overall health of an economy. It involves examining key indicators such as inflation, unemployment, and economic growth to ensure sustainable development. Policymakers use this analysis to implement fiscal and monetary policies that...
Key Terms
Example: If inflation is 2%, a $100 item will cost $102 next year.
Example: An unemployment rate of 5% means 5 out of every 100 people are unemployed.
Example: A country with a GDP of $1 trillion produces $1 trillion worth of goods and services.
Example: Increasing government spending can stimulate economic growth.
Example: Lowering interest rates can encourage borrowing and spending.
Example: During a recession, GDP typically falls, and unemployment rises.