International Trade and Finance Speech

In: Business and Management

Submitted By ybarra1
Words 945
Pages 4
Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Part 1

Describe the following terms in your word.

Gross domestic product (GDP)- The value of all products and services produced in a country in a certain amount of time (usually yearly) *
Real GDP- inflation-adjusted measure that reflects the value of all goods and services produced in a given year, real GDP can account for changes in the price level, so it provides a more accurate figure *
Nominal GDP- a (GDP) figure that has not been adjusted for inflation.

*
Unemployment rate- The number of unemployed workers divided by the total civilian labor force, which includes both the unemployed and those with jobs. *
Inflation rate- The increase in the price of goods and services (in percentages), usually annually.

Interest rate - The rate that is charged or paid for the use of money. * *

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.

Write a 700- to 1,500-word paper summarizing the results.

Contained on the following pages | Fundamentals of Macroeconomics | Penny ColemanECO/372 Principles of Macroeconomics6/4/12J. Carl Bowman | | | | |

The business cycle or economic cycle refers to the ups and downs seen somewhat simultaneously in most parts of an economy. The cycle involves shifts over time between periods of relatively rapid growth of output (recovery and prosperity), alternating with periods of relative stagnation or decline (contraction or recession). These fluctuations are often measured using the real gross domestic product (Blank, 2011) Businesses in the U.S.…...

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