economics worksheet 6

According to the author of the textbook, economists measure prices in the macro-economy to generate a consumer price index (CPI) and, then employ the CPI to compare dollar figures from different points in time and to adjust interest rates for inflation. This helps measure the change in the cost of living. The labor market is also introduced, and enables us to see how full utilization of labor resources improves the level of production and the standard of living. Economists measure the performance of the labor market using unemployment statistics. Based on the Assignment questions explain the cost of living and unemployment issues in the economy.

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