ECO 372 Fundamentals of Macroecomincs

Describe the following terms in your word.

·  Gross domestic product (GDP)

·  Real GDP

·  Nominal GDP

·  Unemployment rate

·  Inflation rate

·  Interest rate

Part 2

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.