ECON102: Principles of Macroeconomics

Upon successful completion of this unit, you will be able to:

• define unemployment rate;
  
• calculate the unemployment rate;
  
• identify and distinguish between the different forms of unemployment;
  
• analyze the problems associated with the unemployment rate;
  
• describe the three types of unemployment and factors that relate to them;
  
• define inflation and deflation, and explain how each affects the price and economic growth of an economy;
  
• define, interpret, and calculate inflation rate and the consumer price index;
  
• describe the problems and biases associated with the consumer price index;
  
• articulate sources of inflation, and explain how they can affect economic stability;
  
• use the model of aggregate demand and aggregate supply to explain stagflation;
• explain the relationship between inflation and unemployment;
  
• describe and analyze the Classical as well as the Keynesian views on unemployment; and
  
• discuss various explanations for wage and price stickiness.