...Fundamentals of Macroeconomics Weston Keene ECO/372 1/16/2014 SAMUEL ADELUSIMO Fundamentals of Macroeconomics part 1 • Gross Domestic Product (GDP) – Gross domestic product is how economist measures the growth with change in the market value of final goods and services produced in the market. • Real GDP- how the economy growth is measured by real gross domestic product. Per capital divided by the total population. • Normal GDP- Normal GDP changes when the supply levels of the product changes which can change the price of an item. Typically figures for GDP do not change like normal GDP. • Unemployment Rate- The unemployment rate is the rate of people unemployed in a certain area. • Inflation Rate- is the persistent rate of change in general goods in services in the economy. • Interest rate- is a rate that the borrow pays back to the lender for loaning them the money. Part 2 There are many factors that pertain to the fundamentals of macroeconomics when purchasing groceries; massive lay offs of employees, and decrease of taxes. Six of the main factors that play a role are gross domestic product, real GDP, Normal GDP, unemployment rate, inflation rate, and interest rate. Which not only affect government, household, and businesses. Purchasing groceries is a very typical weekly activity for the most common household. The inflation rate can affect the prices in most all groceries one example can be the cost of living...
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...Fundamentals of Macroeconomics Macroeconomics is one of the most general fields in economics. Macroeconomics studies the behavior structure, performance, and decision making of the whole economy including changes in unemployment, nationwide income, gross domestic product, and inflation. Macroeconomics concentrate on the progress in the economy as a whole, whereas microeconomics focuses on issues that influence the decisions made by companies and individuals. There are various forms of economic data that make up the fundamentals of macroeconomics, including Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate. These various form can affect the flow of resources among different entities. To fully understand macroeconomics it is important to understand the following terms: Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate. Gross Domestic Product focuses on the country monetary value of all finished goods and services produces in a specific time period. According to "Investopedia" (2009) “the gross domestic product is one of the primary indicators used to gauge the health of a country's economy” (para. 1). Real GDP and Nominal GDP are two terms associated with Gross Domestic Product. Real GDP concentrates on the market value of final goods and services produced using prices from a base year. Nominal GDP focuses on the total value of all goods and services produced in a...
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...Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 1 Fundamentals of Macroeconomics Paper – Part 1 * Gross Domestic Product (GDP) – The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * Real GDP - An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate - The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate - The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 2 Fundamentals of Macroeconomics Paper – Part 2 Purchasing of groceries affects the households, government...
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...Fundamentals of Macroeconomics Jillian Sandbothe ECO/372 April 28, 2014 Dr. Robert Larkin Fundamentals of Macroeconomics Part 1 In the fundamentals of macroeconomics there are some basic vocabulary terms that everyone should know. These terms help to break down certain dynamics of basic economic factors. A list is provided of some of these basic terms and their meanings. * Gross domestic product (GDP): This is the value set upon a good or service, per the current market, within a one calendar year timeframe. * Real GDP: This is the value set upon goods or services per one calendar year that is adjusted for growth changes such as inflation. * Nominal GDP: This is the value set upon goods or services that is not adjusted. * Unemployment rate: This is the percentage of the population that is able to work but whom are not currently working. * Inflation rate: This is the rate at which the price levels increase. * Interest rate: This is what will be paid to borrow money and is based upon inflation. Part 2 The economy is not just a whole bunch of entities that are attached together but intertwined and dependent upon one another. When one small part of the economy shifts the rest is altered. An example of how this flow of events works would be when a large organization goes under there are massive employee layoffs. When this happens consumers decrease their purchases, such as groceries. When consumers...
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...Fundamentals of Macroeconomics ECO 372 Fundamentals of Macroeconomics Fundamentals of Macroeconomics Paper – Part 1 * Gross Domestic Product (GDP) – The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * Real GDP – An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate – The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate – The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate – The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Fundamentals of Macroeconomics Paper – Part 2 There are many examples of economic activity, and each activity has a different effect on government, households, and businesses. Purchasing groceries has a huge effect on the government. Taxes...
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...Fundamentals of Macroeconomics JoRenie Armstrong ECO/372 March 23, 2015 Yohannes Mariam Fundamentals of Macroeconomics Fundamentals of Macroeconomics economic principles apply and affect the entire economic system that encompass the world. Macroeconomics directly impact every part of our government and every individual’s quality of life. The health of the nation’s economy affects our economy. A few areas that determine economic health are the gross domestic product (GDP), gross national product (GNP) the unemployment rate, the inflation rate, and taxes. The Principle areas of Macroeconomics covered in this paper examines the flow of resources between three entities - government, businesses, and individual households. Their interconnecting relationships of how various economic activities connect and affect one another verbalized from the author’s perspective. Households Daily acts, such as buying groceries has an enormous impact on our economy. Purchasing groceries on a regular basis directly affect the GDP. Consumer spending is a driving force of a nation’s economic health. The Gross Domestic Product (GDP) defined is the final monetary measurement of a country’s production activities, of goods and services, bought by the end users in a given period. Purchasing groceries for consumption is part of the GDP collection process. This factor is how individual household purchases affect the nation’s economy. In times of a recession, consumers spending decreases. Consumers...
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...Fundamentals of Macroeconomics James Ciminello ECO/372 May 8, 2013 William Thompson Fundamentals of Macroeconomics Part 1 - The following are terms used in macroeconomics. It is necessary to understand these terms when studying macroeconomics. All of these terms are according to W. W. Norton and Company, Inc. (n.d.), Gross Domestic Product (GDP) - “measures the total market value of all final goods and services produced in a country in a given year, plus exports, minus imports”. Real Gross Domestic Product – “the market value of final goods and services produced in an economy, measured in dollars adjusted for inflation”. Nominal Gross Domestic Product – “the value of gross domestic product in a particular year measured in that year’s prices”. Unemployment Rate – “the ratio of the number of people seeking employment to the total labor force”. Inflation Rate – “the rate of increase of the general level of prices”. Interest Rate – “the return a saver receives in addition to the original amount she deposited (loaned) and the amount a borrower must pay in addition to the original amount he borrowed”. Part 2 In the following examples it will be discussed how each affects government, households, and businesses. Additionally how the resources flow from one entity to another for each activity will be shown. Purchasing of groceries: When society purchases groceries it increases the demand for those particular items. An example would be if one was...
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...Fundamentals of Macroeconomics Paper Part 1: Describe the following terms in your own words. Gross domestic product (GDP) is the indicator of the economic health of a country. Also a measure of the dollar value or goods produced at a given time period. Real GDP is nominal GDP adjusted for inflation. Real GDP is also what is important to a society because it measures what is really produced. Nominal GDP is a gross domestic product (GDP) number that has not been adjusted for inflation. Unemployment rate are rates at which people are either looking for a job or just simply does not have a job. It is measured by the number of people reportedly in the country at one time adjusted by those who are eligible to work and are not. Inflation rate are rates at which the economies prices are adjusting upward or downward. Prices increase and decrease and the measures show the strength or power. Interest rate is tax added back to the payback (what you owe). Fundamentals of Macroeconomics Paper Macroeconomics deals with such issues as national economic output and growth, unemployment, recession, inflation, foreign trade, and monetary and fiscal policy. Using macroeconomics we will study and explore the economy at the aggregate level because it is concerned with the workings of the whole economy or large sectors of it. The sectors include our government, households, and businesses. There are a multitude of different economic activities that affect...
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...Fundamentals of Macroeconomics ECO 372 June 7, 2012 Fundamentals of Macroeconomics This paper will consist of two parts in which will apply and define some fundamentals of macroeconomics. Part one will explain six terms; gross domestic product (GDP), real GDP, nominal GDP, unemployment rate, inflation rate, and finally interest rate. Part two will consist of describing how three economic activities, such as purchasing of groceries, massive layoff of employees, and decrease in taxes affect the three main sectors of the United States economy. The three main sectors are divided into categories, businesses, government, and households. Part two will also describe the flow of resources for each economic activity from one entity to another. Part I: Macroeconomic Terms Gross Domestic Product (GDP) Colander stated that the gross domestic product is, “the total market value of all final goods and services produced in an economy in a one-year period” (p. 183). The GDP is essentially separated into four expenditure categories; the cumulative monetary value of all finished goods from private and public consumption, the sum of government spending, the sum of the country’s spending on capital, and net exports. The net exports are calculated as total worth of exports minus total worth of imports. GDP consists of supplies and services generated...
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...Article 1. ECONOMIC AND FINANCIAL MARKET OUTLOOK (June 2012) No replay of 2011 in the cards for Canadian and US economies Part 1. Summary of the Article First article that I chose is the outlook for advanced economic and financial market particularly US, European union, Canadian and Chinese market that are strongly influence to the world market. Source of the Information and analysis are IMF World Economic outlook and RBC Economic research for year 2012 and forecast for year 2013. This paper includes several economic issues such us economic recession and growth, risk, Labour market and Inflation additionally monetary policies for central banks. Researcher and forecasters compared those issues for different countries and they aim to differentiate and discuss for each of the countries and market situation. Overall, the world economy faces significant challenges in the recent years and is expected to grow by 3.5% this year. Authors stated some significant issues and problems and explained them in detail. For example, paper includes several subtitles about European risk and recession situation, Finding the right policy for Europe, China is in slow growth stage, Canada and US economic situation and factors that impacted in positive and negative ways on the economy, Labour market volatility, Housing market, Households income and debt status, Consumer spending shift, Businesses that are supporting market, Canada’s dollar appreciation, Fed and other central bank policy,...
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...Fundamentals of Macroeconomics ECO-372 Principles of Macroeconomics University of Phoenix Feb 6, 2015 Fundamentals of Macroeconomics Macroeconomics is the study of the economy as whole rather than individual markets. Macroeconomics further explores issues and considers problems such as inflation, unemployment, business cycles, and economic growth. “Macroeconomics focuses on aggregate relationships such as how household consumption is related to income and how government policies can affect growth” (Colander, 2013). Individuals purchasing groceries, large corporation layoffs and the effects of the government reducing taxes, all play into and have impacts on the economy. As these activities are examined closer, we see the effects caused by the government, households, and business decisions nationwide on a daily basis. Purchasing Groceries When entering a grocery store how often does one think, “Where do all these items come from” or what effect purchasing these products has on the nation’s economy? Of course, not all the goods you see on the shelves have come solely from the United States. Something most people do not recognize is that a simple purchase at the grocery store may affect the global economic system. Walking around the local store you may only see a few employees, but behind the scenes hundreds, maybe even thousands have been involved supplying products...
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.../ 372 Fundamentals of Macroeconomics Fundamentals of Macroeconomics Part 1 Gross domestic product (GDP) Is the value of the market where all official goods and services are produced inside of a country for a year or a given time period. This is also a rating for a country’s standard of living. There are three ways to figure out this measure production approach, income approach, or expenditure approach. Real GDP This is a measure of value for an economic output which is adjusted for price changes. This measure also gives us an index for quantity of total output. Real GDP will also account to changes in price levels and then give an accurate figure. Nominal GDP This is a GDP measure that has yet to be adjusted for inflation. This is also known as the current dollar GDP. If inflation is not taken into account the GDP measure will seem higher than it actually is. Unemployment rate This is the percentage of people that are unemployed and not working but are actively looking for work. People who just receive unemployment or who are not working and not looking for work are not accounted for in this rate. Inflation rate This is the rate where the level of prices for goods and services is rising and the purchasing power is dropping. There are some banks that try and slow down or even stop major inflation from happening. While inflation rises, every dollar is worth less such as $1.02 for a $1 candy. ...
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...terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin. All electronic materials are available on the student website. Week One: Fundamentals of Macroeconomics | | Details | Due | Points | Objectives | 1.1 Explain the economic interaction of resources among households, government, and business. 1.2 Describe gross domestic product, inflation rate, unemployment rate, and interest rate. 1.3 Identify sources of historical economic data and economic forecasts. | | | Reading | Read Ch. 1 of Macroeconomics. | | | Reading | Read Ch. 2 of Macroeconomics. | | | Reading | Read...
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...1 Gabriel Cathey ECO/372 September 15, 2014 Instructor: W. Eric Hogan 2 Fundamentals of Macroeconomics When one speaks on economics, there are certain factors to consider simply from a financial bases. The first thing that needs to be done is having an understanding on what is economics? There exist many different parts economics and how it relates to society from all walks of life. The purpose of this article is to give a brief incite into the fundamentals of macroeconomic. Defining What is Economics The word "economics" derives from Greek which means the managing of a household. Economics came about as a discipline from the 18th century which was considered the branch of moral philosophy. Economic is also known as the political economy and studies issues of labor and production, and relationship to law and government. The term "economics" by the 19th century was displaced by "political economy," although the either is still used. Harvard economist Greg Mankiw states the economics is like managing a household that involves dFundamentals of Macroeconomicsecisions on what tasks are done , by who should they be done such as to whom raises the children,who does the chores and who supports the family . All these things down within a household as stated by Greg Mankiw, requires decisions to allocate resources, time and people in household management. Economics expands the the economics term beyond the household...
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...Part 1 Fundamentals of Macroeconomics Macroeconomics puts a focus on how decisions made both on an individual level and by corporations and government has Macroeconomics is known as the study of behavior in relation to the aggregate economy and studies economy-wide issues such as changes in unemployment, income levels and many various other factors (Investopedia, 2012). This paper will define many of the terms used when it comes to dealing with macroeconomics and cover a few examples of economics can effect different situations on both government levels and individual levels. Gross domestic product (GDP) A major term to understand is the gross domestic product which is also known as the GDP. The GDP is the market value of services and final goods that are produced in the economy and the stated price in the given year (Colander, 2010). As people produce goods and earn income from selling those good, the economy grows. Economic growth usually means that a person income increases from one year to the next. Real GDP The real GDP is an inflation adjusted measure shows the value of all goods and services and is being shown in a base year pricing (Colander, 2010). The real GDP is sometimes also referred to as the constant price. To calculate what the real GDP is, a price index is created that measures how much a price level has risen during a year and it is compared to the previous year. This is then divided by the nominal GDP and multiplied by 100 (Investopedia, 2012)...
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