1. I'm having trouble defining these terms in my own words. Unemployment: Consumer Price Index: Inflation: What does unemployment, on its own, tell us about the current state of the US economy? Making sure that my interpretation takes into account the definition of unemployment I wrote above. Are we at full employment? What does the Consumer Price Index/inflation, on its own, tell us about the current state of the US economy? Making sure that my interpretation takes into account the definitions of the CPI and inflation that I wrote above. Are prices stable