Fundamentals of Macroeconomics

Part 1

 

Describe the following terms in your word.

 

·         Gross domestic product (GDP)

·         Real GDP

·         Nominal GDP

·         Unemployment rate

·         Inflation rate

·         Interest rate

 

Part 2

 

Consider the following examples of economic activities:

 

·         Purchasing of groceries

·         Massive layoff of employees

·         Decrease in taxes

 

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

 

 

Write a 700- to 1,500-word paper summarizing the results