Thinking as a manager do you think unemployment is good news orbad news? Defend you answer. The real rate of interest is the nominal orstated rate of interest less inflation. If inflation riseswhat implications does this have for the real cost ofborrowing? As a manager how would your debt strategy changeduring periods of high inflation? How closely should managers watch nationaleconomic indicators? Are there local economic indicators thatyou might use that would help you to better manage yourday-to-day operations? What are these?