Eco/372 Week 2 Individual
Fundamentals of Macroeconomics
ECO/372
By
Nicole Noyce
July 28, 2013
Dr. Samule Onipede
In order to understand what is going on with the United States economy you must understand some important terms that are part of the economic language. You also need to understand how certain activities in your everyday life have an overall effect on the economy. Placing the puzzle pieces of what makes up the economy and what effects the economy will help one to understand how to react in certain situations and how to plan ahead for the future.
Part 1
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP".
Nominal GDP is a gross domestic product (GDP) figure that has not been adjusted for inflation.
Also known as "current dollar GDP" or "chained dollar GDP."
Unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
Inflation rate is the percentage increase in the price of goods and services, usually annually.
Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset,
ECO/372
By
Nicole Noyce
July 28, 2013
Dr. Samule Onipede
In order to understand what is going on with the United States economy you must understand some important terms that are part of the economic language. You also need to understand how certain activities in your everyday life have an overall effect on the economy. Placing the puzzle pieces of what makes up the economy and what effects the economy will help one to understand how to react in certain situations and how to plan ahead for the future.
Part 1
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP".
Nominal GDP is a gross domestic product (GDP) figure that has not been adjusted for inflation.
Also known as "current dollar GDP" or "chained dollar GDP."
Unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
Inflation rate is the percentage increase in the price of goods and services, usually annually.
Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset,