• Gross domestic product (GDP) • Real GDP • Nominal GDP • Unemployment rate • Inflation rate • Interest rate
Consider the following examples of economic activities:
• Purchasing of groceries • Massive layoff of employees • Decrease in taxes
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
Write a 700- to 1,500-word paper summarizing the results.
Preview: Fundamentals of Macroeconomics Every country produces various goods and services. Gross domestic product (GDP) is one of the indicators that display the country’s economic performance. Three approaches are used in the determination of GDP. They include: income approach, expenditure approach, and the product approach. GDP can be referred to as real or nominal GDP (Colander, 2010).