ECO 372 Week 2 Assignment Fundamentals of Macroeconomics Paper

Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Part 1

Describe the following terms in your word.

Gross domestic product (GDP)

Real GDP

Nominal GDP

Unemployment rate

Inflation rate

Interest rate

Part 2

Consider the following examples of economic activities:

Purchasing of groceries

Massive layoff of employees

Decrease in taxes

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

Statistics and charts for these macroeconomic variables can be located at www.bls.gov and www.bea.gov .

Write an APA formatted 700- to 1,500-word paper summarizing the results.  All borrowed material must be cited.  Use of graphs, analytical tables and other statistics is encouraged.