Fundamentals of Economic
Lorinda Davis
ECON/372
August 7, 2012
George Edwards

Fundamentals of Economic
The fundamentals of economics consist of a many challenges in today’s society. There are six main points of economics the writer will discuss in this paper. The gross domestic product, the unemployment rate, the inflation rate, the real GDP, the interest rate, and the nominal rate. The GDP represents the dollar values of goods and service over a period of time. The gross domestic product is a measure of a country values based on good produced, services rendered, and government spending and the difference of exports minus the imports. The real GDP is the measure of the output that is acclimated for inflation or deflation. The nominal GDP is totally different that the change in price is not account for. Unemployment rate is the percentage of the American population that is able to work, but are currently out of work. The inflation rate is the percentage change in the increase of the price of goods and services. Lastly, the interest are define as an annual percentage divide by the principle balance owed by borrowed money. Purchasing of Groceries, Massive Layoff of Employment, and the Decrease of Taxes The financial activities provide the infrastructure for the U.S. economy. In part two the writer will consider how these affect the purchase of groceries, layoffs, and taxes. The government is one part the equation that makes the economics their financial activities may arguably have the greatest effect on our economy, because their decision affects the