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This book provides an introduction to principal macroeconomic phenomena: inflation, unemployment, national income, interest rates and exchange rates. It describes how each phenomenon is measured, what makes it change and the consequences of change. The goal is to provide a degree of literacy about the economy which constitutes the environment of business. This book provides an overview of the environment within which business operates by closely focusing on the key economic variables that constitute it. The chapter-by-chapter analysis of these variables is meant to enable the reader to acquire critical skills for reading or discussing about the economy, and the related fields of enquiry that pertain to economic phenomena.