Thinking as a manager, do you think unemployment is good news or bad news? Defend you answer.

• The real rate of interest is the nominal or stated rate of interest less inflation. If inflation rises, what implications does this have for the real cost of borrowing? As a manager, how would your debt strategy change during periods of high inflation?

• How closely should managers watch national economic indicators? Are there local economic indicators that you might use that would help you to better manage your day-to-day operations? What are these?

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