Upon successful completion of this unit, the student will be able to: - Describe the characteristics of demand and supply, and apply the demand and supply model. - Define real gross domestic product and identify the phases of a business cycle. - Define inflation and deflation, and explain how each affects the price and economic growth of an economy. - Articulate why the price-level changes and how it can affect economic stability. - Explain how unemployment is calculated and measured in the United States. - Demonstrate an understanding of the role of the government in the economy. - Identify the components of the macroeconomy and relate them to the circular flow diagram.