Naked Economics: Undressing the Dismal Science Book by Charles Wheelan   Please refer to the chapter titled, "The Federal Reserve," in the Naked Economics book to answer this question. Which of the below statements IS NOT CORRECT about the term "inflation" or its effect,  as Charles Wheelan explains the term in this chapter? 1) Inflation favors retired people with fixed incomes and increases the purchasing power of their income.   2) Inflation redistributes wealth arbitrarily, as unexpected bouts of inflation are good for debtors and bad for lenders.    3) Massive inflation (or, hyperinflation) distorts the economy, as workers rush to spend their cash before it becomes worthless.    4) The most instructive way to think about inflation is not that prices are going up, but rather that the purchasing power of the dollar is going down.

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Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.