- The book _Macroeconomics_ by Roger A. Arnold is in its Thirteenth Edition _- Chapter 6 focuses on Macroeconomic Measurements, Part I_ Prices and Unemployment _- Section 6-1 covers Measuring Price Level _- (1)

Price Level

A weighted average of prices of goods and services.

Price Index

A measure of the price level.

Consumer Price Index (CPI)

A widely used measure to compute the price level by comparing the cost of a market basket of goods and services over time.

Market Basket

A representative bundle of goods and services used for measuring price changes.

Inflation

An increase in the price level over time.

Real Income

Income adjusted for price changes.

Core PCE Index

Measures prices paid by consumers excluding food and energy prices.

Unemployment Rate

Calculated by dividing the number of unemployed individuals by the total labor force.

Discouraged Workers

Individuals who stop looking for work due to discouragement.

Types of Unemployment

Includes Frictional, Structural, and Natural Unemployment.

Full Employment

Occurs when the unemployment rate equals the natural unemployment rate.

Cyclical Unemployment

The difference between the unemployment rate and the natural unemployment rate.