If the rate of inflation is 6 percent,the nominal interest rate is 9%,and the unemployment rate is 7%,how much is the misery index?

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, proposing to reflect the average citizen's financial discomfort.

Nominal Interest Rate

The rate of interest before adjusting for inflation, representing the face value of interest payments.

Inflation

The speed at which the overall price level for goods and services increases, causing a decline in the value of money.

Comprehend the principle of the misery index and the methodology behind its calculation.

Verified Answer

Final Answer :

6 + 7 = 13

Learning Objectives

Comprehend the principle of the misery index and the methodology behind its calculation.