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Inflation Rate
The percentage increase in the general level of prices for goods and services in an economy over a period of time, often measured annually.
Natural Rate
Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable rate of inflation.
Unemployment
Unemployment is the state of being without a job despite actively looking for work, reflecting the portion of the labor force unable to find gainful employment.
Friedman-Phelps Analysis
The Friedman-Phelps analysis introduces the concept of the natural rate of unemployment, arguing that inflation and unemployment rates are not linked in the long term due to adaptive expectations.
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