Unemployment and Inflation are macroeconomic problems that summarises the state of the economy. This podcast discusses how the government measures unemployment rate, the cost associated with unemployment, together with the various types and causes of unemployment.

Inflation is an increase in the general level of prices in the economy; a decline in the level of prices is deflation. The primary measure of inflation is the Consumer Price Index. It compares the prices of a ” market basket” of consumer goods in a particular year to the prices for that market basket in a base period, to produce a price index. The rate of inflation from one year to the next is equal to the percentage change in the CPI between the current year and the preceding year.