...Gross domestic product (GDP) – Is the total market value of goods and services that are produced in a certain time frame. Real GDP – Is the same as above, but measured yearly at consistent values. Nominal GDP – Same as above, but measured at current values. Unemployment Rate – This is the measurement of individuals who are not working during the measured time. They may be willing to work but are not able to find work. Inflation Rate – The inflation rate is affected by the GDP and the result is a price increase for goods and services. Interest rate – is a rate that a lender sets for a borrower to pay back when taking out a loan, the decision of approval is dependent on several factors and the same factors can determine the interest rate the lender wants the borrower to pay. When considering the three economic activities (purchasing groceries, massive layoff of employees, and decrease in taxes) you will find that it is a circular motion where each activity has an effect on the others, causing each entity (government, business, household) to feel the effects. Think about a small town that survives on farming and a local paper mill as the citizen’s livelihood. Now take a look at purchasing groceries, we can see how it affects each entity in different ways. This economic activity would affect the government (local, state and federal) because we pay taxes on groceries and the items we do not pay taxes on are inflated to make up the difference, so the government is...
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...ECO 372 Entire Course (UOP Course) For more course tutorials visit www.tutorialrank.com ECO 372 Week 1 Discussion Question 1 ECO 372 Week 1 Discussion Question 2 ECO 372 week 1 Individual Assignment Term Definition Paper ECO 372 Week 2 Discussion Question 1 ECO 372 Week 2 Group Discussion Question ECO 372 week 2 Team Assignment Industry Overview Paper ECO 372 Week 3 Discussion Question 1 ECO 372 Week 3 Group Discussion Question ECO 372 week 3 Individual Assignment Fiscal Policy Alternatives Simulation ECO 372 week 3 Team Assignment Economic Indicators Paper ECO 372 Week 4 Discussion Question 1 ECO 372 Week 4 Group Discussion Question ECO 372 week 4 Team Assignment Economic Indicator Forecast Paper ECO 372 week 5 Individual Assignment Applying International Trade Concepts Simulation ECO 372 week 5 Team Assignment Economic Project Paper ECO 372 Final Exam Guide ------------------------------------------------------------------------------------------ ECO 372 Final Exam Guide (UOP Course) For more course tutorials visit www.tutorialrank.com 1) The largest source of household income in the U.S. is obtained from 2) The market where business sell goods and services to households and the government is called the 3) Real gross domestic product is best defined as 4) Underemployment includes people A. who work "off-the-books" to avoid tax liabilities B. who are working part time, or not using all their...
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...Jacqueline Castro ECO/372 February 28, 2013 Laurence P. Hagan Fundamental of Macroeconomics Paper Gross Domestic Product (GDP) Colander (2010) stated that gross domestic product (GDP) is “the market value of final goods and services produced in an economy, stated in the prices of a given year. When people produce and sell their goods, they earn income, so when an economy is growing; both total output and total income are increasing (p. 155). My understanding of GDP is a way for the country to gauge the value of the goods and services that the country itself produces, whether to export or to sell within the country’s own borders. Real GDP Growth is measured by the change in real gross domestic product (real GDP) and by the change in per capita real GDP. Per capita real GDP is a real GDP divided by the total population. Real GDP is nominal GDP adjusted for inflation (Colander, 2010). Personally I found the explanation in our book to be a bit confusing therefore I did some additional research and found out that real GDP is an inflation-adjusted measure that is used by the government to determine the value of all the goods and the services that have been produced within a specific year. Nominal GDP According to Colander (2010), nominal GDP is % change in real GDP = % change in nominal GDP – Inflation. Doing that subtraction is what economists mean when they say that real GDP is equal to nominal GDP adjusted for inflation. My understanding of nominal GDP is simply the figure...
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...Pedro Campa University of Phoenix 1/12/2012 ECO/372: Principles of Macroeconomics Economics is a social science that helps to analyze the production, distribution and consumption of what gets produced from goods and services. It helps tie in all the money factors into a large society equation and from there it manages its spendings. Economics helps identify the interaction of resources among households, government and businesses. Working with economics one needs to understand the basic fundamentals of gross domestic products (GDP), inflation rate, unemployment rate, and interest rates. Economics interactions is how money is spent and how well it nteracts with the changes in society. With households, the interaction involves with the upgrade of a home or how to finance a house properly. Any cash spent for renovation or upgrade involves an interaction with the effect of the economy. The government is cautious on how it spends its money so its interaction is on how well it helps out its citizens. It can be from creating new homes to building new highways. These have an economic impact because it affects those that pay taxes to get these spendings through. Business plays an active role with economic interaction because it succeeds if it achieves. It can help with foreign trade or local business in our own homes. If someone buys a product then the business flourishes and it helps with the interaction. Gross Domestic product is the market solve that is...
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...Macroeconomic Terms ECO/372 Version 8 University of Phoenix Material Macroeconomic Terms Define the following terms in your words. Term Definition Definition Source Gross Domestic Product (GDP) Is the total market value of all final goods and services produced in an economy in a oneyear period. Colander, D. (2012). Economics (9th ed.). East Windsor, NJ: McGraw Hill Real GDP Is the total amount of goods and services produced, adjusted for price-level changes. It is the measure of output that would exist if the price level had remained constant. Colander, D. (2012). Economics (9th ed.). East Windsor, NJ: McGraw Hill Nominal GDP The amount of goods and services produced measured at current prices. Colander, D. (2012). Economics (9th ed.). East Windsor, NJ: McGraw Hill Unemployment rate The U.S. unemployment rate is determined by dividing the number of people who are unemployed by the number of people in the labor force—those people in an economy who are willing and able to work—and multiplying by 100. Colander, D. (2012). Economics (9th ed.). East Windsor, NJ: McGraw Hill Inflation rate The percentage increase in the price of goods and services, usually annually http://www.investorwords.com/2456/ inflation_rate.html Fiscal Policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy...
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...ECO/372 Week5 December 1st, 2013 Eduardo V. Delacruz, MBA International Trade and Finance Speech What happens when there is a surplus of imports into the U S? A surplus of imports is good for consumers but bad for local business. We have to produce and manufacture in order to export. As our export trade shrinks, so does our workforce and economy. The surplus of imported cars for 2012 has exceeded the exportation by $152 billion. Also the shelf life of cars is 1 year. Every year at the end of the cycle the existing models are sold off at huge discounts to make room for the new models, which is good for the consumer. What are the effects of international trade to GDP, domestic markets, and university students? International trade comprises exports and imports, the net result of which affects our GDP. Since our imports exceed our exports, our GDP would be impacted by our net exports or deficits. “The rippling effect of financing deficits is an increase in interest rates from selling bonds that reduces investments and growth. This further reduces GDP” (Colander. 2010). Domestic markets flourish when there is a demand for local products overseas. If the domestic markets have to compete with imported products it could be a struggle. However jobs can be created for the advertising, sales, and distribution of foreign imports. The effect of international trade on university students has recently brought about an awareness of a vibrant industry in the education...
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...Keene ECO/372 1/16/2014 SAMUEL ADELUSIMO Fundamentals of Macroeconomics part 1 • Gross Domestic Product (GDP) – Gross domestic product is how economist measures the growth with change in the market value of final goods and services produced in the market. • Real GDP- how the economy growth is measured by real gross domestic product. Per capital divided by the total population. • Normal GDP- Normal GDP changes when the supply levels of the product changes which can change the price of an item. Typically figures for GDP do not change like normal GDP. • Unemployment Rate- The unemployment rate is the rate of people unemployed in a certain area. • Inflation Rate- is the persistent rate of change in general goods in services in the economy. • Interest rate- is a rate that the borrow pays back to the lender for loaning them the money. Part 2 There are many factors that pertain to the fundamentals of macroeconomics when purchasing groceries; massive lay offs of employees, and decrease of taxes. Six of the main factors that play a role are gross domestic product, real GDP, Normal GDP, unemployment rate, inflation rate, and interest rate. Which not only affect government, household, and businesses. Purchasing groceries is a very typical weekly activity for the most common household. The inflation rate can affect the prices in most all groceries one example can be the cost of living, which is measured by real GDP. Groceries...
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...Reflection Summary Team-C ECO/372 Feb 10, 2012 Reflection Summary A budget deficit occurs when government expenditures exceed the amount of revenue coming into the economy through income and taxes. Since World War II, the United States government has run a large deficit, instead of a surplus. Depending on the particular condition of the economy, a deficit can be right or wrong. The goal is to improve the economy when the government runs a budget deficit. The government will spend money to help stimulate economic growth when the economy is not progressing at a rate the country expects. Both the government and society benefits from the added debt when the government spends money to improve revenue for the long-term. A budget deficit can help businesses create more jobs to limit the amount of unemployment and enhance consumer income. The debts accumulated may be the result of spending on worthwhile projects like road repair or necessary services like education. The government is also spending to establish programs for the longevity of the nation. A budget deficit can have an adverse effect on the economy. A budget deficit can result in increased debt. As the debt increases, the government increases taxes. When taxes are higher than business owners can afford, the result is an increase in unemployment. A budget deficit can also lead to an increase in printed money, which decreases the dollar value and increases inflation. Budget surplus is the opposite of the...
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...ECO/372 Final Exam Study Guide Created by ACCNerd.com How to Use this Study Guide – READ ME FIRST The following study guide will NOT have the same exact questions on your test! However, this study guide WILL help you ace the ECO/372 Final Exam. The guide covers the same topics and will help you gain a deeper understanding of the concepts. Best of all, you are still guaranteed a score of 90% or higher or your money back! Tip #1: Use CRTL+F to search a related keyword to quickly find the topic you need. Tip #2: If a topic is missing, please email us at support@accnerd.com. We can usually provide immediate custom support during normal business hours. 1. What is the name of the market where businesses sell products to households and government institutions? Goods market Explanation: The goods market is term that refers to the primary market where businesses interact with end users of products. 2. How would you describe Real Gross Domestic Product (GDP)? The market value of all final goods and services produced in an economy or country Explanation: Real GDP will be stated in the currency used during that year. It only includes final goods and services. 3. Who is included in underemployment figures? People who are working part time or not actively working a fulltime job Explanation: Underemployment figures show us the number of people whose skills are not being fully utilized. 4. The Bureau of Economic Analysis in the United States is...
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...Economics 101 By Alicia Fletcher April 29, 2013 ECO/372 Shah Danyal Economics 101 The gross domestic product is the output of goods and services provided by labor and property located in the US. The measurement is used to determine the growth of the economy and can determine what areas may need a boost in their output to help the economy grow. An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP". Real GDP is the nominal GDP plus adjustment for inflation. Real GDP is also called per capita real output which is where the total population divides the real GDP. Unlike nominal GDP, real GDP can account for changes in the price level, and provide a more accurate figure. Nominal GDP is a gross domestic product (GDP) figure that has not been adjusted for inflation. Also known as "current dollar GDP" or "chained dollar GDP.” ("Invetopeida", 2013) The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work. Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. ("Invetopeida", 2013) As inflation rises, every dollar you own buys a smaller percentage of a good or service. Interest rate is the amount charged, expressed as a percentage of...
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...Fundamentals of Macroeconomics Cleveland Ivery ECO/372 Version 4 11/03/2013 Spyridon Patton Part 1 Macroeconomics includes a variety of terms relevant to its study. The following terms help identify key factors that influence the U.S. economy. The Gross Domestic Product (GDP) is a measure of a country’s value based on goods produced, services rendered, government spending, and the difference of exports minus imports. The Real GDP is the measure of the output of GDP that is acclimated for inflation or deflation. It is also the amount of the nation’s net exports during a given term say a month or a year, which is expressed in a dollar amount. Economists measure, record, chart, and analyze the trends and fluctuations in the GDP. They use the data to gauge which state of the business cycle the economy is in: contraction, trough, expansion, or peak. This information influences whether businesses will save or invest, hire or fire, and survive or die. The Nominal GDP is a little different in such that the change in price is not accounted for. Unemployment rate refers to the percentage of the American population that is eligible to work but are current jobless. Inflation rate is the percentage change in the increase of the price of goods and services...
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...Fundamentals of Macroeconomics January 28, 2013 ECO/372 Part 1 I will be discussing the following terms in my paper, gross domestic product (GDP), real GDP, Nominal GDP, unemployment rate, inflation rate, and interest rate. From there I will talk about examples of economic activity. Let us start with gross domestic product and what it means to me, which is the market value of goods and services that are produced within a country in a certain amount of time. GDP can also fall in the same lines as determining a countries standard of living but will not go as far as to measure a person’s income. Real GDP is inflation or deflation which would also mean an adjusted measure that reflects the value of all goods and services that are produced in a given year used a lot of the time to as a constant price because of inflation. To me it also has to do with the nation’s output of goods and services that are fixed to cohere to price changes. It is what the nation is paying for out of pocket each year in cash. Nominal GDP is a gross domestic product that has not been adjusted yet for inflation. If there are any GDP that does not account for inflation can in some aspect become misleading because the GDP will reflect as being higher than it actually is. So there could look as if there is more money then there is and could then result in a big mess. As I discussed in the team reflection paper, the unemployment rate is at an all time high because of the economy downfall that happened a few...
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...Fundamentals of Macroeconomics Pua Edayan ECO/372 October 26, 2012 William Akamine Fundamentals of Macroeconomics Gross domestic product is the market value of final goods and services produced in a given period within the United States. National accounts are related to the gross domestic product which is a subject in macroeconomics. It has three ways that results are the same. Product approach is the most direct and sums the outputs. This approach has market value of final goods and services that is calculated within a year. The gross domestic product is released quarterly. It is used to measure economic outputs and the growth rate is evaluated by the Federal Reserve. Real gross domestic product reflects positive contributions from exports with fixed investments from nonresidential, personal expenditures, and state and government spending whereas, a subtraction of imports are increased. It measures the economy as the cost incurred and earned incomes of the gross domestic product are in the production. For example, if 1992 is the base year, then the real gross domestic product for 1996 is calculated by quantities of goods and services that were purchased in 1996 are multiplied by their 1992 prices. Evaluations at current market prices are known as nominal gross domestic product. Therefore, all changes in market prices include during the year due to deflation or inflation. Deflation meaning a decrease in price level and inflation that show...
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...Fundamentals of Macroeconomics Paper Laurie Page ECO/372 November 06, 2013 Beau Whitney Fundamentals of Macroeconomics Paper Macroeconomics affects households, the government, and businesses. The gross domestic product (GDP) measures the dollar value of products or a service at any given time period and shows how strong the economy is. The real GDP measures the dollar value as it changes in the market. Nominal GDP measures how strong the dollar value is (because of inflation, figures are sometimes inconsistent). The unemployment rate is measured by how many people are reported out of work in a country at any given time. The inflation rate measures how prices increase and decrease and shows the strength and power of the economy. Interest rate measures the amount of money that will be paid back to a loan company when taking out a loan. GDP is the measure of the output of a country, state, or city. When shopping for household goods or purchasing product for a business the GDP, real GDP, and nominal GDP play an important role as to what is actually purchased. The GDP is going to determine how much the product is going to cost the consumer. The real GDP (which determines the value of the dollar) will determine whether the consumer wants to purchase the product at the asking price. The nominal GDP measure the dollar value and determines whether the consumer can afford to purchase products. Because of inflation prices change and the dollar value is not consistent....
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...ECO/372 Principles of Macroeconomics Individual: Fundamentals of Macroeconomics Paper Part 1 Gross Domestic Product (GDP): Market value of all goods that are produced in a given time period. Real GDP: The measurement of GDP at constant prices. Nominal GDP: The measurement of GDP at current prices. Unemployment Rate: The measurement of knowing how many people are unemployed in the country versus employed people. Inflation Rate: The measurement of increase in prices over a period of time. Interest Rate: The dollar amount that is paid yearly on a loan by the borrower. Part 2 The three activities affect each entity different, looking at how purchasing groceries would affect the government only if there was some sort of inflation going on. Then the government would raise taxes on goods in which will raise the prices of goods. As for households it can affect them in a negative way or a positive way. If we look at buying groceries in today’s economy it rather difficult because the price of goods are going up, but wages are staying the same. So, when it comes to a household of maybe 6 or 7 it would difficult to feed them because the take home pay is so low. The business aspect of buying groceries, the business will always succeed because people need and have to eat. So, if the economy is bad the grocery industry will not see a decline because people have to eat. Even when wages are low and the prices of goods are high people still have to buy groceries to survive. Massive...
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