Governments consider these goals when implementing their economic policies:
Price stability (i.e a low rate of inflation
Sustainable rates of economic growth
Low unemployment
A balanced balance of payments
Inflation: Inflation is the rate of increase of the general price leveland the corresponding fall in the value of money.
Deflation:
Deflation is the general fall of price levels over a period of time resulting in a rise in the value of money
Gross domestic product (GDP): Is the value of all goods and services produced within an economy over a given period of time.
Recession: A recession is the decline in the level of economic activity measured as a fall in GDP; that occurs over two quarters (six months) or longer.
Real GDP: GDP data adjusted to remove the effects of inflation
