...Fundamentals of Macroeconomics paper ECO 372 January 20, 2014 Fundamentals of Macroeconomics paper In this assignment we have been asked to dive into the fundamentals of macroeconomics. Macroeconomics looks at the economy and attempts to answers the questions such as economy to growth over time, short-run fluctuations in the economy, and performance issues. In order to understand and answer these questions one must first understand the fundamentals and the components that drive the economy. Throughout this paper we will describe the fundamentals that make our economy; these fundamentals are Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The gross domestic product or GDP, measures countries output of all goods and services that are produced in the country (Amadeo, 2014). The factors of the gross domestic product are personal consumption expenditures plus business investments plus government spending plus exports minus imports (Amadeo, 2014). After one understands the factors of the gross domestic product it is easy to calculate the gross domestic product if one fallows this simple formula C + I +G+ ( X – M ) (Amadeo, 2014). The next component is the Real GDP. The Real GDP is a measurement of the economic output of a country minus inflation. This allows a person to evaluate the economy's production for each quarter more accurately (Amadeo, 2014). By doing this a person can tell if more product is being produced...
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...Fundamentals of Macroeconomics Paper Desires and wants help represents a part of what economics stands for and the way people governors themselves in society. In today’s society the way a person lives helps the economy decides on the product of things that are produced for consumer’s way of living. To help understand some of the fundamentals of macroeconomics these definition will give a clearer example of what macroeconomics stands for. Gross domestic product (GDP) let you know the about the total market value of all products of good that have been produced in a year’s time. The real (GDP) will state the price of all the total goods that have been produced in that given year. Nominal (GDP) things that are not adjusted for inflation but a price will be figured. Unemployment rate shows the total work force that is not working at any given time. Inflation rate describes how prices are easily calculated and in changed in a matter of time. Interest rate is experience by all folk it is the given amount calculated on the price for the use of using someone else money. Purchasing of groceries, massive layoff of employees and decrease in taxes are economic activities that go on daily in the world. As stated “The quantity of goods, services, and usable resources depends on technology and human action (Colander, 2010, p. 5).” Without the purchasing of different products or spending, there will be no employees of taxes to increase or decrease. The purchasing of groceries...
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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 Paper Laterrious Robinson ECO/372 Nov. 27, 2012 Eugene Kaufman University of Phoenix Fundamentals of Macroeconomics Paper Economics is the study that shows how the people of a specific country, land, or culture deal with scarcity and the decisions to utilize their limited resources. It is the key element that helps to understand the well-being a country, culture, or society. Macroeconomics describes the economy as a whole by focusing on certain issues such as unemployment rate, interest rate, and inflation. This paper will discuss terms relating to macroeconomics and examples of economic activities. The first term that will be discussed is Gross Domestic Product or commonly known as the GDP. The GDP calculates the value of all goods and services of a country, region, or society within a given period of time. A country or region with a high GDP means that the people within the region are happy and it reflects a lot of transactions within the land that is providing the people with the goods and services they want. Since it is nearly second nature for people to consume goods and services, using GDP allows economists to show how good a country or region is doing with maximizing the people’s happiness or satisfaction with its limited resources. The Gross Domestic Product or (GDP) shows what a society or country has manufactured in any given year. Real GDP shows the total inflation, adjusted...
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...University of Phoenix Fundamentals of Macroeconomics paper ECO/372 September 10, 2012 First Part The gross domestic product is a measure of country’s value: Goods produced + Service rendered + Government Spending + (Exports)-(imports) = GROSS DOMESTIC PRODUCT Real Gross Domestic Product equals to the measure of the output of the Gross domestic Product that is acclimated for inflation or deflation. The Nominal Gross Domestic Product differs specially on the aspect that the change in price is not accounted. The unemployment rates is the quantity of people that are able to work due to their age, studies or other conditions but are currently unemployed. Inflation rate is the variation that can be positive or negative of goods or service. Most of the time when the inflation is negative it’s also call deflation but sometimes it’s common to see a negative inflation. Interest rate is the annual % divided by the quantity owed each month on borrowed capital. Second Part On the second part of the paper some things that are explained in the first part will make a complete sense when they become related with real life examples. I will show the link between the following economic activities: Purchasing of groceries Massive layoff of employees Decrease in taxes The economy of a nation is a large number of factors linked each other and strictly related that easily become an ecosystem just as in the...
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...Fundamentals of Macroeconomics Paper ECO/372 Amy J. Eulett March 4th, 2013 Dr. Mike Thirtle There are many differences between the gross domestic products (GDP), the real GDP, the nominal GDP, the unemployment rate, the inflation rate, and the interest rate. There are also many different examples of economic activities. Groceries, massive layoff of any employees along with any decreases that may accrue in the taxes are all activities that can affect someone’s business, someone’s household or even the government. They are all related in some way or another. The Gross Domestic Product can also be called GDP for short. The GDP is the market value of any of the final services or goods that within the year was produced in the economy. The real GDP is from the current year that is inflation adjusted that measures the reflects the services and goods value. The nominal GDP is when the gross domestic product is figured out but has not even been adjusted for any inflation. The unemployment rate is the total amount of the labor force that does not have a job but are wanting and looking for a job. The inflation rate is the inflation or the rate being measured to see about any price increases. The interest rate is a current rate that is paid for using the money that was charged at an earlier time. The economic activities is when someone can provide goods to someone else that they hunt, fish, or make themselves. For example, hunting, fishing, manufacturing or even mining. With purchasing...
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...On the Economic Impacts of Reweable Energy Acts In ever changing world where every political decision must conern itself with the effect on the economy, no change in the way our world works is as great as the contiuing shift from the hydrocarbon energy ecoonmy which is defined by dependnce on the use of fossil fuels, such as coal and oil, to the new renewable or green energy economy in which techolgies are being further developed to power our world through clean sources of energy such as wind, hydro power, geotheral, biomass and others. The shift is slow, but it will begin to speed up as the people of both america and the world become further aware of the long term cost of hydrocarbon consumption and effects on the enviroment, and the lowering costs for both personal and buisness use of renwable energy as technoligy becomes more efficant. The econmic benefits of such a shift cannot be deneied, ranging from job creation to positive impacts on the terrif defficit to bennifits in the small buisness sector. In looking at renewable energys impact on the economy the one aspect the most every citizen shall look closely to is the potental of job growth and creation. Utilizing these energy sources are great growth methods for the economy which for too long has been dependent on tradional means, the improvment in the economy comes hand in hand with job creation. Money invested in these energy sources is spent on the materials too build systems such as wind tubines, solar panals...
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...Fundamentals of Macroeconomics Paper Eric R Drayton ECO/372 June 9, 2014 Mr. Robert Freitaas, Jr. Fundamentals of Macroeconomics Paper Macroeconomics is a field developed to measure the economic health of the government, by using the Gross Domestic Product, and the unemployment rate along with the rise and fall of inflation. Such things as the purchasing of food for the household too Massive layoff of employees, and the Decrease in taxes all play a major role in the overall health of the country, Purchasing of Food is a necessity need for us as humans and by purchasing food it is something that will affect every household, and is something that cannot be ignored. Purchasing of food will affect the government in that depending on the state of inflection will make the different in how much grocery a family can buy pre week are month from the local store .Inflation also may affect the over-all amount of money that the average family will purchase and may cost them to cut back on their spending because of the prices of the goods. The purchasing of grocery is also affected by Massive lay-offs and the decrease in taxes affect the way families spend on grocery do the coast of the month 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 within the time frame of grocery shopping, Which means some household may have to turn to the government assistance programs to purchase...
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...Fundamentals of Macroeconomics Paper This paper will include definitions of terms used in economics or macroeconomics as well as scenarios related to economics and how these terms and scenarios work together. Understanding these terms are important to doing business in today’s world and can help one gain a clearer picture of how things work in terms of money. Monetary rules help make life a bit easier by avoiding chaos, even if there are some that do not agree. One term used in economics is gross domestic product or GDP. GDP is defined as the final count on products that are manufactured within a given country and under a certain time period. The GDP includes products consumed for public and private use, government use, exports, and investments. Imports are not calculated in GDP because these goods are not produced in the specific country. The formula for calculating the GDP is GDP = C + G + I + NX. The C in this expression stands for the consumption or spending that occurs within a country during a given time period (normally a year) on the public or private sectors. The G in the expression stands for government consumption or spending in the same time frame in a given country. The I in the expression stands for the total number of what businesses within a given country spend on capital in that particular year, and the NX in the expression stands for the country’s exports – imports in that same year. Another term used in economics is Real GDP. Real GPD is defined as the...
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...Fundamentals of Macroeconomics Paper Alyssa Arellano ECO/372 August 25, 2014 Yohannes Mariam Fundamentals of Macroeconomics Paper The fundamentals of macroeconomics affects how the whole world operates, affecting everyone’s lives in one way or another. “The U.S. economy can be divided into three sectors: household, businesses, and government” (Colander, 2013, p. 55). Economic activities such as purchasing of groceries, massive layoff of people, and decrease in taxes play a vital role in how the flow of resources interconnects from one entity to another. Purchasing of Groceries The purchasing of groceries has many effects on the economy as well as in households and the government. The purchasing of groceries affects households because it is an element that is needed and one cannot live without, making it impossible to ignore. Thus, households interact with businesses and the government in many forms. First, households supply economic resources such as labor, and other factors of production to gain income to purchase goods (the purchase of groceries) is called the factor market, and services that businesses produce to sell is known as the “factor market” (Colander, 2013, p.55). Furthermore, businesses rely on households to determine what and how much to produce, because if they over produce and households do not purchase the production, then they will have to sell the items at a mark down price in order to meet the demand of product known as the “goods...
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...Fundamentals of Macroeconomics Paper ECO/372 – Principles of Macroeconomics Dr. Robert Larkin Part 1 Gross domestic product is the most used economic measure when determining the total market value of all goods and services that are produced within a years’ time. These are all goods and services within one border including government outlays and public consumption, among a couple others. The GDP helps analyze the health of an economy and to decide the average standard of living. Transactions that are not reported to the government make the GDP less accurate as we do not know the true output of the community. Real gross domestic product (GDP) is the final value that the economic market gives to a product or service based on the current economy. This inflation is an adjusted measure that shows the true value of goods and services that are offered within one years’ time. This form of GDP adjusts with the prices levels to form more accurate analysis. The total output of a country’s resources fluctuates with the economy. Nominal (GDP) is the total market value of goods and services that are produced at current prices based on the economic market. These prices for goods and services already include changes within the market and are not re-adjusted for inflation or deflation. Unemployment rate defines the amount of people that are not currently employed and are actively looking for work. When this rate increases, the...
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...Running Head: MACROECONOMICS TERM PAPER 1 Macroeconomics Term Paper MACROECONOMICS TERM PAPER 2 Abstract Using the required United States economic indicators the federal government uses to guide the economy, I researched and analyzed each indicator by comparing the data from 2010 to that of 2011. Even though a large number of economists are optimistic, my opinion is that while recovery is progressing, the pace at which we are moving is not fast enough to rejuvenate consumer confidence. Based on what I have read and have learned in the classroom over the last few weeks, I am even more concerned for our future than I was before I started to learn the world of economics. The comparisons of the economic indicators paint a very dismal picture to me. MACROECONOMICS TERM PAPER 3 Gross Domestic Product After learning what the Gross Domestic Product (GDP) is, I better understand the data I researched. Based on what I read on the Bureau of Economic Analysis website, Table 1 – Real Gross Domestic Product and Related Measures, the Gross Domestic Product for June of 2010 (Q3) was 2.5 percent compared to the Gross Domestic Product of 2.0 percent, only a year later in June of 2011 (Q3); a deficit of .5 percent between the two years. The...
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...Sovereign Wealth Fund: Some Policy and Operational Considerations”, Udaibir S. Das, Yinqiu Lu, Christian Mulder, and Amadou Sy, August 2009 Das, Lu, Mulder, Sy (2009) setting up a Sovereign Wealth Fund (SWF) and provides relevant recommendations for policy makers. At the outset, it says: “policymakers should optimally consider both their sovereign assets and liabilities together with their macroeconomic objectives, when setting up an SWF.” On “ What is a Sovereign Wealth Fund?” section of the paper, the authors provides the definition of SWF by stating that these Funds are created for macroeconomics purposes in order to “ to hold, manage, or administer financial assets to achieve financial objectives”. On the next section, “When to Set up an SWF?” the paper argues that there is no certain time to establish SWF by using “fiscal surpluses and accumulated foreign exchange reserves” and it is totally up to the choices of relevant countries. Nevertheless, it was highlighted in the paper that in practice actually countries establish SWF “in a more ad hoc basis”. In other words, the paper states that “Compared with a traditional investment approach, which assumes that investors perceive their assets as fungible, behavioral finance assumes that investors tend to group their assets in a number of non-fungible accounts, and make decisions differently depending on the purpose for setting up the account.” Later, under the section of “When are a Country’s Reserves Adequate?”, the...
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...June 10, 2014 KENNETH S. ROGOFF CURRICULUM VITAE Economics Department, Littauer Center, Harvard University, Cambridge MA 02138-3001, 617495-4022, FAX: 617-495-7330, email: krogoff@harvard.edu Webpage: http://scholar.harvard.edu/rogoff Birth date: March 22, 1953 Married to Natasha Lance Rogoff, two children (Gabriel and Juliana) EDUCATION Massachusetts Institute of Technology, Ph.D., February 1980 Doctoral Dissertation: Essays on Expectations and Exchange Rate Volatility. Yale University, B.A./M.A. summa cum laude, Honors in Economics, May 1975. PROFESSIONAL POSITIONS Professor of Economics, Harvard University, September 1999 – present; Thomas D. Cabot Professor of Public Policy, January 2004 – present. Chief Economist and Director of Research, International Monetary Fund, 2001–2003. Director, Harvard Center for International Development, 2003–2004. Professor of Economics and International Affairs, Princeton University, 1992–94; Charles and Marie Robertson Professor of International Affairs, 1995–1999. Professor of Economics, University of California at Berkeley, 1989–1991. Associate Professor of Economics, University of Wisconsin-Madison, 1985–1988. Economist, International Finance Division, Board of Governors of the Federal Reserve System, 1980–1983; Section Chief, Trade and Financial Studies Section, 1984. Economist, Research Department, International Monetary Fund, Oct. 1982 – Sept. 1983. VISITING POSITIONS BP-LSE Visiting Centennial Professor, London School...
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