Natural Rate of Unemployment and Inflation

These flashcards cover key concepts related to the natural rate of unemployment and inflation as discussed in the lecture notes.

The natural rate of unemployment is defined as + .

structural unemployment + frictional unemployment.

The U.S. natural rate of unemployment typically ranges between and percent.

4% and 6%.

Inflation refers to the __ increase in the prices of all goods and services within a country's economy.

general.

Inflation statistics in the U.S. are prepared by the __ every month.

Bureau of Labor Statistics.

The Consumer Price Index measures the change in the prices of all goods and services consumed by a typical consumer and reported a __ increase from September 24 to September 25.

3%.

When inflation occurs, the value of money __.

goes down.

The Core Inflation Rate is defined as the inflation rate that excludes the prices of and .

food and energy.

The Federal Reserve uses the Core Inflation Rate to formulate its __ policy.

monetary.

Prices of food and energy are excluded from core inflation calculations because they can be __.

volatile.

Factors such as natural disasters and geopolitical instability can cause __ in the prices of food and energy.

supply shocks.

Inflation can be seen as beneficial to an extent because it often correlates with increased __ for goods and services.

demand.