Economic Definitions Worksheet 1. Gross Doemstic Product (GDP) GDP is a flow concept that measures final aggregate output per year for a given country. Even though GDP is reported quarterly; it is annualized, meaning it is reported as an estimate for the entire year. Final production includes the value of all goods and services produced by all companies withing that given country. 2. Real GDP Real GDP
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QUESTION 1 Explain why the study of macroeconomics is important in making business decisions. Macroeconomics is the study of the economy as a whole. It is the study of the aggregate demand and aggregate supply which reflect the demand and supply of everybody in the whole country. It examines the activities and trends in economy’s wide phenomena, such as unemployment, inflation, economic growth, money supply, budget deficits, and exchange rates. The knowledge from this study will indicate the
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|CONTENTS | |THEORY COURSE: | |Title sheet [Program, Course Code - Course Name, Credit Structures, Pre-Requisite and Co-Requisite, Instructor’s Web-Link | |Address (Moodle), Name of Instructor, Division, and School]
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Module 1: Circular Flow Circular flow of economic activities and Income Circular flow of income is the representation of the relations between households and firms. Factors of production (for example labour) are owned by households, who supply those factors to the firms. In return they receive rewards such as rent, wage, interest and profit. On the other hand firms supply good and services to households for which they receive payments. * Another sector in in the circular flow of income is
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Running head: WEEK 1 ECON CONCEPTS WORKSHEET Week 1 Economic Concepts Worksheet University of Phoenix ECO501 Economic Concepts Worksheet Concept | Application of Concept from Personal Experience | Reference to Concept in Reading | Supply is a schedule or curve that shows the total amount of a product or service that is available for sale or purchaseChanges in Supply: * Change in Resource * Technology * Taxes/subsidies * Prices of other goods * Expectations of future pricing
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The concept I will illustrate through the lens of mesoeconomics for my two current events are competition. Mesoeconomics is the bridge between macro economics and microeconomics. The circular flow of the economy is influenced by mesoeconomics. Competitions for online banking customers are intense among top U.S. banks; because of increased unemployment, credit crisis and the overall poor health of the U.S. economy. Marc Trudeau states “Americans have less cash, are spending less and have
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Fundamentals of Macroeconomics The following terms will be define, gross domestic product (GDP), real GDP, unemployment rate, inflation rate, and interest rate. The circular flow diagram will be introduced to describe the representation and interactions with households, government, and businesses. The current economic conditions of the world affects individuals. The most valuable economic indicators will be recognized as affecting the organization along with reasoning of
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What are Models?Simplified representations Economists use to help understand the complex reality. The Production Possibilities Frontier and Circular Flow Diagram are:The Main models Economists use to portray and represent the Closed Economy. The Circular Flow Diagram contains 2 Actors (Decision Makers):1) Households 2) Firms The Circular Flow Diagram contains 2 Markets:1) Goods and Services 2) Factors of Production What are the roles of Firms?PRODUCE Goods and Services, Using Inputs:
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Business Economics II (Macroeconomics) Objective of Macroeconomic: Following are the basic objective of macroeconomics which deals on national basis 1. Output Growth Production 2. Employment stability 3. Price level stability 4. Foreign debts Definition of Fiscal Policy: Fiscal policy refers to government policy that attempts to influence direction of the economic through changes in government taxes and some government spending. e.g. High rate of inflation: High
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The Circle Flow By Leanne Hall ECON224-1203A-06 Edward Hale American InterContinental University June 14, 2012 Abstract In this I will explain and define what open and closed systems are. I will be examples of both. I will also explain the inner and outer flows of both systems. In an open system there are injections, leakages, and I will explain, define them, and I will also give examples of both an injection, and a leakage. Economics is a very interesting subject to learn about.
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