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Macroeconomics Fundamentals

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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 our government, households, and businesses considering the following economic activities purchasing of groceries, massive layoff of employees, and decrease in taxes, I will describe how they affect the sectors of the economy.

Purchasing of groceries, massive layoff of employees, and decrease in taxes are some of the activities that affect the growth of each of the economic sectors. Because...

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