Week 2 Mgt 230 Paper

Fundamentals of Macroeconomics
Gregory Miral
ECO 372
September 3rd, 2012
Franny Chan

Fundamentals of Macroeconomics
Part 1
Terms and definitions
glaring domestic product (GDP) - GDP is the market value of entirely recognized final goods and services produced within a untaught for a given time period.
Real GDP the tangible GDP adjusts for inflation, real GDP is based on the impairments of a good or service in a division with accounting for inflation or deflation. Real GDP is the more(prenominal) accu locate of the two.
Nominal GDP on the other evanesce does not adjust for inflation, nominal GDP is based on the prices of goods or services in a year without accounting for inflation and deflation. Nominal GDP empennage be the likes of an estimate since it does not take into account for inflation and deflation
Unemployment rate is the percentage of the total workforce that is unemployed plainly that be willing to work and that actively looking to seek employment. Unemployment can be varied rates by state and national. many states are lower than the national unemployment rates.
Inflation rate is the sum up in the levels of price for goods and services. Inflation is measured by yearbook percentage increase and as inflation raises the dollars that you own but a smaller percentage of a good or service.



A good example of inflation is comparing the price of products or services back in the 1950s to prices now.
busy rate- Interest rates are the rates that are use when a person borrows money for a loan. It can be calculated in many different ways much(prenominal) as monthly, annually, and compounded. The term of the loan can be different amounts of times as rise.
Part 2
Economic Activities
When purchasing groceries you embark in an economic activity. When making purchase at a grocery put in the money goes to several places. The money goes as a sale to the grocery store which leads to a profit. The store is then able to continue to provide groceries as well as support how they get the groceries. Stores...If you want to get a full essay, order it on our website: Orderessay



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