Fundamentals of Macroeconomics Essay

778 Words Jun 20th, 2012 4 Pages
Fundamentals of Macroeconomics

Fundamentals of Macroeconomics
Stafford M. McClendon
ECO372
University of Phoenix Online

Part 1

Describe the following terms in your word.

• Gross domestic product (GDP) The Market value or measure of how strong a countries economy is. Also a measure of the dollar value or goods produced at a given time period.

• Real GDP Real GDP represents the actual dollar value exercised for constant change. Market values change rapidly and often, the real GDP is shows the value as it changes.

• Nominal GDP Nominal GDP is a measure of how strong the dollar value, but because inflation has not been accounted for the figures are sometimes
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The low production means prices go up because of low quantity. When prices go up consumers and retailers are affected because it becomes a trickle affect, from the retailer down to the consumer and the savings they usually get goes out the window. It also affects households because when the prices go up leaving less money for other activities such as outings or family fun activities. It affects decreased taxes to help lower prices to drive the demand back up because if people cannot afford the higher prices, placing smaller taxes upon them would drive the demand back up, thus increasing the demand and the supply. The massive layoff of employees affects everything. If people do not have jobs they cannot afford anything because they do not have money to buy products. Layoffs affect home because it becomes stressful upon marriages and households in general. No job you cannot afford to pay bills, buy food, put gas in vehicles to look for work, mowing the lawn. Layoffs make people do unjust deeds, such as stealing from the consumers they normally would not have an issue purchasing the products. No power or electricity in the homes means any lights to see. Layoffs mean no water to take a bath, water the lawn or plants. Layoffs affect the government because it means less taxes being paid. When people are working the economy becomes stronger because people can go out and make

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