Eco 372 week 2 individual assignment
Fundamentals of Macroeconomics Paper
Brandy Webb
Eco 372
November 24, 2014
Watson Ragin
First Draft of Fundamentals of Macroeconomics Paper
There are a lot issues that actually affect our economy, such acts as gross domestic product, nominal GDP, real GDP, inflation rate, unemployment rate, and as well as interest rates. These areas actually has massive power regarding the way we purchase groceries, if there will be a large amounts of layoffs to workers, and decrease in taxes. Gross Domestic Product is defined as the market value of services and goods that are made in the country in one year. This is an indication of the normal living situation in a country. On the contrary, real GDP is a nation’s total output of goods and services adjusted for price changes. Nominal GDP is the gross domestic product without inflation adjustments. Unemployment rate is a fraction of the whole workforce who are unemployed and looking for work. Inflation rate is the amount increase by percentage that products & services increase on an annual basis. Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. These factors are relevant to our lives and how we manager the money we have. Purchasing food sounds like an easy thing to do but if you are limited on money, it can be very stressful. The price of food affects the government. Products are produced and sold within our country; this affects GDP, real GDP, and nominal GDP. This is precisely relevant to buyers spending and during periods of recession, buyers ease up on spending and decide to save. Once consumers venture into savings mode, all business will be effected because production is down and this could cause layoffs. Purchasing food affects homes due to the fact that a lot of people have a hard time trying to provide for their families and when the cost of goods constantly goes up but wages don 't this makes it really difficult to live.
Brandy Webb
Eco 372
November 24, 2014
Watson Ragin
First Draft of Fundamentals of Macroeconomics Paper
There are a lot issues that actually affect our economy, such acts as gross domestic product, nominal GDP, real GDP, inflation rate, unemployment rate, and as well as interest rates. These areas actually has massive power regarding the way we purchase groceries, if there will be a large amounts of layoffs to workers, and decrease in taxes. Gross Domestic Product is defined as the market value of services and goods that are made in the country in one year. This is an indication of the normal living situation in a country. On the contrary, real GDP is a nation’s total output of goods and services adjusted for price changes. Nominal GDP is the gross domestic product without inflation adjustments. Unemployment rate is a fraction of the whole workforce who are unemployed and looking for work. Inflation rate is the amount increase by percentage that products & services increase on an annual basis. Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. These factors are relevant to our lives and how we manager the money we have. Purchasing food sounds like an easy thing to do but if you are limited on money, it can be very stressful. The price of food affects the government. Products are produced and sold within our country; this affects GDP, real GDP, and nominal GDP. This is precisely relevant to buyers spending and during periods of recession, buyers ease up on spending and decide to save. Once consumers venture into savings mode, all business will be effected because production is down and this could cause layoffs. Purchasing food affects homes due to the fact that a lot of people have a hard time trying to provide for their families and when the cost of goods constantly goes up but wages don 't this makes it really difficult to live.
References: Colander, D.C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin http://www.forbes.com