Economic stability is characterized by a combination of low unemployment, stable inflation, and sustainable economic growth.

Monetary policy primarily aims to achieve price stability, which helps maintain the value of money and prevent inflation or deflation.

Expansionary fiscal policy involves increasing government spending or cutting taxes to inject money into the economy and boost aggregate demand.

Stagflation is a combination of high inflation and high unemployment, typically caused by supply shocks or monetary policy errors.

The Consumer Price Index (CPI), Producer Price Index (PPI), and GDP Deflator are all measures of the overall price level.

Deflation is a general decrease in prices, often associated with economic downturns and falling aggregate demand.

Fiscal policy uses government spending and taxation to influence the economy, while monetary policy uses interest rates and money supply.

Supply-side policies aim to increase the economy's productive capacity by encouraging investment, innovation, and labor market flexibility.

Monetarism, associated with Milton Friedman, emphasizes the role of the money supply in determining economic outcomes.

Stagflation is a combination of high inflation and economic growth, typically caused by supply shocks or monetary policy errors.

Gross Domestic Product (GDP) is the total value of all goods and services produced within a country's borders in a given period.

Inflation is a general increase in prices, often associated with economic growth and rising aggregate demand.

Monetary policy uses interest rates and money supply to influence the economy, while fiscal policy uses government spending and taxation.

Expansion is a period of economic growth, typically characterized by rising employment and output.

Unemployment Rate is the percentage of the labor force that is actively seeking work but is unable to find it.