Term Paper
.Economics is used in almost all aspects of life. It is about the choices and decisions we make. An understanding of economics will show how to live and exist in the world today and help us understand how the business world works. As the concept of economics is discussed, many terms are used to describe how economics works in the world. There terms will be defined so that they are better understood throughout the discussion of the economy and market demand.
The terms Gross Domestic Product (GDP), Real Gross Domestic Product, Nominal Gross Domestic Product, Unemployment rate, Inflation rate, and Interest rate, help to break down the analysis of economics and give a better understanding of the direction our economy is headed.

Part One: Terms and Definitions
Gross domestic Product (GDP) is the market value of all recognized final goods and service produced within a country. It is measured by household consumption spending, business investment spending, and government purchases to equal net exports. It is important to the economy because it shows the growing economical rates.
Real GDP is an adjustment for inflation. It is based on the prices of a good or service in a year with inflation or deflation accountability. It accounts for changes in the pricing level and then provides a more accurate figure. Economist rely on this to get a constant pricing.
Nominal GDP does not adjust for inflation. It is based on the prices of goods or services in a year without inflation or deflation accountability.
Unemployment rate is the percentage of total workforce that is unemployed but are still will to find jobs and are seeking new employment.
Inflation rate is the increase of prices for goods and services. It is measured by annual percentage increase.
Interest rate is the amount charged that expressed in a percentage by a lender to borrower for the use of an