Eco 372: Fundamentals Of Macroeconomics
Fundamentals of Macroeconomics Paper
Jerry L. Robinson
ECO/372
JUNE 07, 2012
CHAD McDermott
Fundamentals of Macroeconomics Paper
Gross domestic product: is the value of all goods and services produced in a country in any given year or specific time period. This is measured in dollar amounts and basically the higher the GDP, the better the economy is for that country.
Real gross domestic product: is nominal Gross domestic product that has been adjusted for inflation. This means that the quantity of goods and services must have the converted values for the prices to be made at the market price. The market price also sets the importance of how things will be purchased on the market.
Nominal gross domestic product: is Gross domestic …show more content…
When the massive layoffs begin, this does a number of things really fast, if you have no job, you have no income to do the grocery shopping for your family. If you can’t do the grocery shopping for your family, then the government doesn’t get the taxes from the purchasing of your groceries. If the government does get the taxes from the purchasing of your groceries, that means the stores aren’t making the money that they would usually make due to the massive layoff of employees. Also the factories that gave the massive layoffs will give employee the pink slip so that they can file for unemployment, when they apply for the unemployment benefits, they government will not get the taxes from the unemployment benefits because this isn’t taxable. So basically, massive layoffs not only affect the worker, but it also affects the government and the factory owner and shareholders as …show more content…
We pay taxes on just about everything, so when a decrease in taxes occurs, this lets us know that when the taxes goes down, a deflation in our economy happens and we tend to spend more money because we know that as long as there is a decrease in taxes we have a little more money to purchase things. This affects the businesses as well, because if the taxes are low they can spend more money on the things that they use to run the factories our buy more ink that produces the paper from the paper factory. This activity affects the government as well, because if the taxes go down there is less money that the government receives from the different factories and or businesses that pays these taxes. This will also trigger a change in our economy in some different form or fashion. If taxes are going down, then you can best assure that inflation or the unemployment rate or both will be affected by this particular economic
Jerry L. Robinson
ECO/372
JUNE 07, 2012
CHAD McDermott
Fundamentals of Macroeconomics Paper
Gross domestic product: is the value of all goods and services produced in a country in any given year or specific time period. This is measured in dollar amounts and basically the higher the GDP, the better the economy is for that country.
Real gross domestic product: is nominal Gross domestic product that has been adjusted for inflation. This means that the quantity of goods and services must have the converted values for the prices to be made at the market price. The market price also sets the importance of how things will be purchased on the market.
Nominal gross domestic product: is Gross domestic …show more content…
When the massive layoffs begin, this does a number of things really fast, if you have no job, you have no income to do the grocery shopping for your family. If you can’t do the grocery shopping for your family, then the government doesn’t get the taxes from the purchasing of your groceries. If the government does get the taxes from the purchasing of your groceries, that means the stores aren’t making the money that they would usually make due to the massive layoff of employees. Also the factories that gave the massive layoffs will give employee the pink slip so that they can file for unemployment, when they apply for the unemployment benefits, they government will not get the taxes from the unemployment benefits because this isn’t taxable. So basically, massive layoffs not only affect the worker, but it also affects the government and the factory owner and shareholders as …show more content…
We pay taxes on just about everything, so when a decrease in taxes occurs, this lets us know that when the taxes goes down, a deflation in our economy happens and we tend to spend more money because we know that as long as there is a decrease in taxes we have a little more money to purchase things. This affects the businesses as well, because if the taxes are low they can spend more money on the things that they use to run the factories our buy more ink that produces the paper from the paper factory. This activity affects the government as well, because if the taxes go down there is less money that the government receives from the different factories and or businesses that pays these taxes. This will also trigger a change in our economy in some different form or fashion. If taxes are going down, then you can best assure that inflation or the unemployment rate or both will be affected by this particular economic