Fundalmentels of Macroeconomics

Gross domestic product (GDP) is the price on the market of all officially

recognized final goods and services that are produced inside a country in a certain time

period. GDP per capita is often considered an indicator of a country's standard of living.

Real GDP is an example of the difference between real vs. nominal values in

economics. Nominal GDP is defined as the market value of all final products produced

in a geographical region. That market value is determined on the quantities of goods and

services produced, and their respective prices.

Nominal GDP is Nominal GDP is defined as the market value of all final products

produced in a geographical region. That market value is determined on the quantities of

goods and services produced, and their respective prices.

Unemployment rate is the percentage of the total labor force that is unemployed

but actively seeking employment and willing to work.

Inflation rate is a measure of inflation, or the rate of increase of a price index

such as the consumer price index. It is the percentage rate of change in price level over

time, usually one year. The rate of decrease in the purchasing power of money is

approximately equal.

Interest rate is the rate at which interest is paid by borrowers for the use of money that

they borrow from a lender.

We are asked to describe how the purchasing of groceries, massive layoff of

employee's, and decrease in taxes affect the households, government, and businesses. All

things in life have a cause and affect, and this does not disclude the economy. Groceries

are taxed and when we buy groceries the taxes that are added to the purchases that we

make do however affect the government. Example: when I go to buy pomegranate from

my corner market, now we know that agriculture uses pesticiedes to keep insects from

damaging the agriculture along with other things that may harm