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Explain how unemployment insurance acts as an automatic stabilizer.
Price Indexes
Statistical measures reflecting the average change over time in the prices paid by consumers or received by producers for goods and services.
Nominal GDP
The market value of all goods and services produced in a country in a given period, measured using current prices, without adjusting for inflation.
Real GDP
Represents the total value of all goods and services produced within a country's borders, adjusted for price changes or inflation.
Cost of Capital
The rate of return a firm must earn on its investments to maintain its market value and attract funds.
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