Examlex
The Federal Reserve increases interest rates when it wants to reduce aggregate demand to fight inflation. How do increases in the interest rate reduce aggregate demand?
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment, used as a key indicator of labor market health.
Natural Rate
often references the natural rate of unemployment, which is the level of unemployment consistent with sustaining a stable rate of inflation.
Short-run Phillips Curve
A curve depicting the inverse relationship between the rate of inflation and the unemployment rate in the short term, suggesting a trade-off between the two.
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment, used as a key indicator of the health of an economy.
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