Fundamentals of Macroeconomics

is the study of how decisions are made by consumers and suppliers, how these decisions determine the allocation of scarce resources in the marketplace, and how public policy can influence market outcomes for better or worse. A basic understanding of microeconomics is essential to the study of macroeconomics because “micro” provides the foundations upon which “macro” is built. It is pointless to try to explain, for example, the demand for money and how it affects interest rates in the economy without a grasp of how suppliers and buyers interact in a market.

Definitions

Gross domestic product (GDP) is a key pointer used to measure a country’s economy. GDP represents the total dollar value over a certain time period. When the GDP is positive is reflects the country has grown over that period compared to the previous. Real GDP represents the nation output of goods and services, minus the price changes from a base year. Nominal GDP gives an estimate of the figure before taking into account inflation. Unemployment is calculated by the total of unemployed workers that are actively seeking to gain employment. Inflation rate is the increase of price of goods in relation to a dollar. Interest Rate is the amount charged to an asset by a lender. A lender typically determines the rate on the risk of the consumer

Our economy is important to us all who live in the United States; so for some being aware of not only the current events but those from the past as well. There are resources available to give us this important information.

Resources

Global Macro Forecast Database this covers 49 countries that is 93% the world’s GDP, with baseline forecast and alternative scenarios; these forecasts out 10 years with a quarterly that is updated monthly. Under the baseline view it reports a monthly analysis forecasting assumptions