Fundamentals of Macroeconomics
Fundamentals of Macroeconomics
ECO/372 Principles of Macroeconomics
Alisha Wisniewski
May 28, 2013
David Aloyan
Part 1
Using Resource: Figure 3-1 in Ch. 3 of Macroeconomics 1. Gross Domestic Product – Is value of how much every household and a business can produce within the United States in a year. 2. Real GDP – The dollar amount of money made by businesses, government, and households combined. 3. Nominal GDP – GDP without taking in account other factors like inflation. It estimates current GDP so analyst can try to determine if GDP will go up or down next. 4. Unemployment Rate – Rate of home many people have applied for unemployment. If this rate goes up, GDP will go down because citizens will not have any money to spen to buy goods or services to add to the value of GDP. 5. Inflation Rate – the rise of general prices for goods that make customers stop purchasing them, or reduce the amount that is sold. It reduces the amount of purchasing power for consumers as well as producers. 6. Interest Rate – The rate paid by borrows for the ability to use money provided by the lender. Loans are car payments are popular investments with interest rates. Interest rate is affected by, inflation, un employment rates, and investment.
Part 2
Issues of Economic Activity Households, Businesses, and the Government represent the three key elements of the United States market economy. These factors intertwine and rely on each other to interact in a variety of ways where each component benefits from the other as well as relies on each for different factors (Colander, Chapter 3, 2010). Households supply labor and production to businesses that in return pay employment for the services. This interaction is known as the factor market. Businesses generate supplies and services that are sold to the households that in return pay for them. This factor is interaction is known as the goods markets. The US economy is also connected to the world
ECO/372 Principles of Macroeconomics
Alisha Wisniewski
May 28, 2013
David Aloyan
Part 1
Using Resource: Figure 3-1 in Ch. 3 of Macroeconomics 1. Gross Domestic Product – Is value of how much every household and a business can produce within the United States in a year. 2. Real GDP – The dollar amount of money made by businesses, government, and households combined. 3. Nominal GDP – GDP without taking in account other factors like inflation. It estimates current GDP so analyst can try to determine if GDP will go up or down next. 4. Unemployment Rate – Rate of home many people have applied for unemployment. If this rate goes up, GDP will go down because citizens will not have any money to spen to buy goods or services to add to the value of GDP. 5. Inflation Rate – the rise of general prices for goods that make customers stop purchasing them, or reduce the amount that is sold. It reduces the amount of purchasing power for consumers as well as producers. 6. Interest Rate – The rate paid by borrows for the ability to use money provided by the lender. Loans are car payments are popular investments with interest rates. Interest rate is affected by, inflation, un employment rates, and investment.
Part 2
Issues of Economic Activity Households, Businesses, and the Government represent the three key elements of the United States market economy. These factors intertwine and rely on each other to interact in a variety of ways where each component benefits from the other as well as relies on each for different factors (Colander, Chapter 3, 2010). Households supply labor and production to businesses that in return pay employment for the services. This interaction is known as the factor market. Businesses generate supplies and services that are sold to the households that in return pay for them. This factor is interaction is known as the goods markets. The US economy is also connected to the world
References: Colander, D.C. (2010). Macroeconomics. Retrieved from The University of Phoenix eBook Collection database.