...Fundamentals of Macroeconomics Kevin Conrad ECO 372 Paul Updike May 5, 2014 Part 1 • Gross domestic product (GDP) – The total market value of all the products and services a country provides or consumes over the course of one year. • Real GDP - The total market value of all the products and services a country provides or consumes over the course of one year based on prices of a given year. • Nominal GDP - The total market value of all the products and services a country provides or consumes calculated with existing prices. • Unemployment rate – This is the number of people in a country or economy who are able to work but have been laid off from their jobs. Many of these people are more than willing to work but sometimes have a hard time finding a job. • Inflation rate – The rate at which the prices of services and products continuously rise, inflation causes the prices for products to rise. It makes everything more expensive than a month ago or days ago even depending on how fast the inflation rate is moving over the course of time. • Interest rate – The fee paid when borrowing money from a financial institution for buying a car, house, etc. The financial institution charges this rate so that they make a profit on the money that you are borrowing from them. This rate can be higher or lower depending on your credit score. People with excellent or good credit will get a lower interest rate than people with bad credit scores. Part 2 The U.S. economy is divided...
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...Fundamentals of Macroeconomics Name ECO/372 Date Teacher Fundamentals of Macroeconomics The economy is nothing if not extraordinarily complicated. It is intertwined with everything and almost seems as if Newton’s third law applies to it as well. Even the smallest of matters can have a large implication across the economy. The butterfly effect also comes to mind. This paper will evaluate a few of the common activities that can happen within a society, and how those common activities can affect the home, business industry, and government. Purchasing of groceries Grocery prices are on the rise. Not long ago diesel fuel was $4.00 a gallon. This is the method in which all groceries are harvested and/ or transported. An increase in the cost of fuel caused an inflation in grocery prices to reflect a “fuel surcharge” grocers were incurring from transportation companies. Farmers are on the decline as well (Parker2011). Farmers are getting older and selling the farm land instead of passing it on to their sons. If the demand is the same or growing and the supply lessens, the price will rise. When a person purchases groceries, the effects to businesses and households may be fairly obvious. The money that person spends on those groceries decrease their cash flow and increase their inventory of the home. This trade of cash for goods benefits many businesses. The goods purchased will benefit the grocer who is making a profit on the mark up of the goods. The manufacturer of the...
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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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...Fundamental of Macroeconomics Paper 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...
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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 Weston 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...
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...Fundamentals Of Macroeconomics 1 Fundamentals Of Macroeconomics ECO/372 Fundamentals Of Macroeconomics 2 Fundamentals Of Macroeconomics In the following paragraph I will be defining the following in my own words, Gross domestic product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. Gross domestic product (GDP) can be described as the total value of the goods that are produced and the services that were provided in the country for the full year. An example of that would be growing crops and the value of the goods that were produced and the how much they made for the year in total. Real GDP is real gross domestic profit; it is the distinction between real and the nominal values in economics. The nominal value is the final market value of the goods. Nominal GDP is the accurate prices in the market. This would include everything from how the prices on the goods may have gone up or down. The Unemployment Rate is how many people are actually filling for unemployment this would be people that have gotten laid off from their jobs, been fired or from where they have not been able to find a job. They get the percentage from all the people that are currently in the labor force and getting benefits. The Inflation Rate this is the change...
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...Fundamentals of Macroeconomics Paper ECO/372 June 9th 2014 Professor Salazar Fundamentals of Macroeconomics The global economy is a concept important to understand and mastering this concept is successful by analyzing the term macroeconomics. Macroeconomics a term that illustrates the economy as a whole by describing economics aspects in different countries around the World as opposed to microeconomics which contemplates countries in a singular fashion. The following paper speaks to terms surrounding macroeconomics and consumer economic issues like unemployment, inflation, and interest rates. The Gross Domestic Product or GDP measures a societies manufacturing activities in a one year period. Two aspects of GDP are Real GDP and Nominal GDP and understanding the differences between the two is vital to computing Gross Domestic Product. Real GDP expresses how inflation effects the dollar value of a product of service each year and a reference for this change is the consumer price index. Nominal GDP however are not adjusted for inflation and will at times expresses bigger numbers than Real GDP. The unemployment rate expresses the percentage of people in different countries that either do not have a job or practice other means of obtaining currency. In addition, unemployment is directly affected by inflation another concept surrounding the fundamentals of macroeconomics. Inflation is the how much the price of a product of service increases in the economy. “Inflation...
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...Fundamentals of Macroeconomics Jillian Sandbothe ECO/372 April 28, 2014 Dr. Robert Larkin Fundamentals of Macroeconomics Part 1 In the fundamentals of macroeconomics there are some basic vocabulary terms that everyone should know. These terms help to break down certain dynamics of basic economic factors. A list is provided of some of these basic terms and their meanings. * Gross domestic product (GDP): This is the value set upon a good or service, per the current market, within a one calendar year timeframe. * Real GDP: This is the value set upon goods or services per one calendar year that is adjusted for growth changes such as inflation. * Nominal GDP: This is the value set upon goods or services that is not adjusted. * Unemployment rate: This is the percentage of the population that is able to work but whom are not currently working. * Inflation rate: This is the rate at which the price levels increase. * Interest rate: This is what will be paid to borrow money and is based upon inflation. Part 2 The economy is not just a whole bunch of entities that are attached together but intertwined and dependent upon one another. When one small part of the economy shifts the rest is altered. An example of how this flow of events works would be when a large organization goes under there are massive employee layoffs. When this happens consumers decrease their purchases, such as groceries. When consumers...
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...RUNNING HEAD: FUNDAMENTALS OF MACROECONOMICS 1 Fundamentals of Macroeconomics ECO/372 February 5, 2015 Samuel Imarhiagbe FUNDAMENTALS 2 Fundamentals of Macroeconomics Macroeconomics studies an economy at the aggregate level. It is concerned with the workings of the whole economy or large sectors of it. These sectors include government, business, and households. Macroeconomics deals with such issues as national economic output and growth, unemployment, recession, inflation, foreign trade, and monetary and fiscal policy (Koch, 2015). Macroeconomics is utilized when looking at the impact that activities such as purchasing groceries, massive employee layoffs and a decrease in taxes have on the government, households and businesses. Purchasing Groceries Grocery shopping is an activity that almost every household is expected to participate in. Approximately 15% of American income is spent on groceries; the smallest rise in prices can impact a family’s budget (Parker, 2011). Food prices are determined by several factors including, but not limited to, the economy, taxes, regulations and demand. If the demand for certain products is down or the economy is not doing well, the government may increase taxes on items, including groceries. If the price of groceries increases, consumers may be obligated to purchase a lesser amount of groceries or may begin purchasing a FUNDAMENTALS 3 lower quality of groceries from discount...
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...School of Business ------------------------------------------------- Syllabus ECO/372 Version 4 Principles of Macroeconomics Whenever there is any question including about what assignments are due, please remember this syllabus is considered the ruling document. Group Number: GA11BSB08 Course Start Date: 07/17/2012 Course End Date: 08/14/20112 Course Schedule: Workshop 1 – July 17, 2012 Workshop 2 – July 24, 2012 Workshop 3 – July 31, 2012 Workshop 4 – Aug. 7, 2012 Workshop 5 – Aug. 14, 2012 FACILITATOR: Farooq A. Khan COURSE LOCATION, DAY AND TIME: Gardena Learning Center, Tuesday @ 6PM REQUIRED READING: Students are required to read all materials available at the Course Materials site for this course on https://ecampus.phoenix.edu/portal/portal/public/login.aspx | Course Syllabus School of Business ECO/372 Version 4 Principles of Macroeconomics | Copyright © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved. Course Description This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies:...
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...Fundamentals of Macroeconomics Paper ECO/372 March 26, 2012 Fundamentals of Macroeconomics Paper The fundamentals of Macroeconomics will affect everyone’s lives personally at some point. Each household, government entity, and business will see the importance of macroeconomics. Our practices that we have become accustom to and are very familiar with on daily, monthly, or weekly bases are all part of macroeconomics. Learning the terminology of economics and what really makes the economy work will give us a better insight on why things operate the way that they do. Purchasing of groceries will affect every household and is a priority that cannot be ignored. Grocery purchasing will affect the government because depending on the state of the economy will determine how much a family would be able to purchase from the local grocery store. If there is a sign of inflation the prices could be pricier for the average consumer and they may cut back on what they would normal spend on groceries. Every household is affected by the amount of groceries that are purchased because there has to be enough for everyone to eat. The household may need government assistance to purchase food if they are not able to make ends meet. Businesses are affected by purchasing groceries because they have to stay competitive if they want to flourish in business. Consumers would be likely to travel to other businesses outside of their vicinity to purchase items at a sale price; therefore businesses will have...
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...Fundamentals of Macroeconomics ECO/372 Principles of Macroeconomics Fundamentals of Macroeconomics Macroeconomics is a type of economics focused on performance and structure of the economy as opposed to individual markets. That focus macroeconomics includes evaluating growth. Clear understanding of macroeconomics starts with the interpretation of basic concepts and definitions. Definitions such as gross domestic product (GDP), differentiation between nominal and real GDP as well as rates of inflation, interest, and unemployment are key terms to become familiar with. Macroeconomic Terms Gross domestic product or GDP is the total market value of recognized products, goods, and services over a given period of time. The recognized piece pertains to the fact that some goods or services could be “under the table” or non-taxable. GDP is manipulated by under the counter sales, illegal drug sales, non-reported sales, and other illegal activity. GDP is segmented into categories of real and nominal. The difference between real GDP and nominal GDP is that real GDP is adjusted for inflation whereas nominal GDP is GDP calculated at existing prices or value at current market price. GDP is an accurate measure of market activity but not welfare. The happiness element is very difficult to measure. Unemployment occurs when people are without work and actively seeking work. The unemployment rate measures the prevalence of unemployment and is calculated by dividing the number of unemployed...
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...Fundamentals of Macroeconomics ECO 372 Fundamentals of Macroeconomics Fundamentals of Macroeconomics Paper – Part 1 * Gross Domestic Product (GDP) – The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * Real GDP – An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate – The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate – The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate – The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Fundamentals of Macroeconomics Paper – Part 2 There are many examples of economic activity, and each activity has a different effect on government, households, and businesses. Purchasing groceries has a huge effect on the government. Taxes...
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...Fundamentals of Macroeconomics Kikisha Holmes ECO/372 Principles of Macroeconomics July 8, 2013 Lyn Bush Macroeconomics describes matters such as development, increase in prices, job loss, exchange rates, interest rates, and budget shortages. Macroeconomics provides a combined outline to report these issues and to examine the effect of different policies, such as fiscal and monetary fiscal policies, on the total behavior of individuals. This paper will define specific terms of macroeconomics and how specific examples of economic activities affect government, households, and businesses. The following terms explains the fundamentals of macroeconomics. Gross domestic product (GDP) is the aggregate of the selling prices, or values, of all finished goods and services made in the economy during a specific time frame and calculates the rate of economic activity inside the country. Real GDP is an evaluation of the value of production the economy creates. Nominal GDP is the current market value of all products and services created in the United States. Unemployment rate is the proportionate rate of the amount of individuals unemployed but are still looking for work. Inflation rate is the percentage of the rise or fall of rates on prices. Interest rate is the yearly amount charged by the lender on a product or service for the borrower to acquire the loan and allow the lender to get a return on the investment. ...
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