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Macroeconomic analysis concerns

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I understand that there are three primary concerns in macroeconomics analysis that include: inflation, output growth and unemployment. The only thing I do not understand is the motivation behind these concerns. Can you explain please?

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Solution Summary

The solution shows the concepts of inflation, output growth and unemployment in macroeconomics analysis.

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In fact, these are major concerns in any economy.

Inflation is the erratic increase in the prices of goods and services. Abrupt changes of prices of goods and services may result to either reduction in the sales of commodities or a reduction in workforce. Inflation erodes money's purchasing power. A 10% increase in price will result to a corresponding 10% reduction in a currency's purchasing power. The real monetary value of the salaries of workers goes down during inflation. This is a real concern. Business people that sell products that are perfectly competitive will find it hard to compete and may decide to stop operations altogether. ...

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