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An employee perceives that his supervisor can get him a desired promotion. In this example, the supervisor has
Natural Rate of Unemployment
The level of unemployment consistent with a stable rate of inflation, also seen as the equilibrium between the labor force and the number of available jobs.
Actual Inflation
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as measured over a specific period.
Expected Rate of Inflation
The expected pace at which the overall price level of goods and services will increase over time.
Federal Reserve
The central banking system of the United States, responsible for regulating the monetary policy to stabilize the economy.
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