Solved: What does the term inflation describe, Macroeconomics

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What does the term inflation describe

Assignment:

1) What does the term ‘Inflation' describe?

2) What constitutes a ‘business cycle'? (Through which phases does an economy pass in the course of one cycle? What do those terms describe?)

3) Briefly elaborate on why the unemployment rate is seen as an important indicator for the health of an economy.

4) Describe the economic situation in which Keynes's macroeconomic policy concepts were first gaining attraction.

5) Explain two examples for destabilizing effects of deflation.

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