Gross Domestic Product (Gdp)

Topics: Inflation, Economics, Unemployment Pages: 3 (996 words) Published: February 18, 2013
Gross domestic product (GDP)
Market value of recognized goods and services produced in a country over a period of time. Real GDP
Real GDP reflects the value of all goods and services produced in a year with inflation-adjusted measures. Nominal GDP
GDP figures that have not been adjusted for inflation.
Unemployment rate
Unemployment rate is figured by people that are actively looking for work and are available to work at the present moment. Inflation rate
The rate of increase in a price index for example consumer price index it is the percentage of change in prices over time usually measured yearly. Interest rate
Percentage of money that is paid back to a lender on funds borrowed.

The United States Economy can be divided into three groups business, households, and government and they are all interconnected (Colander, 2010). First businesses provide goods and service and sell them to households. Next households supply labor and other needs to business to produce goods and service. Finally the government is a referee and tax collector as a referee the government set rules that build relationships between businesses and households. Then as a tax collector the government collects money to build improvements including education, roads, and defense. This paper is intended to show how each activity affects the service at all levels (Colander, 2010). Purchasing of groceries is a necessary economic activity and affects all three groups. Business have to determine what to produce and how much to produce this is determined by households, because if a business is producing goods that households do not want to buy then they have to sell the goods at a minimum mark up to meet the demand of the product. On the other hand if they are producing products for the grocery store that is in high demand and cannot keep up with the demand they can offer the product at a premium. This affects the government because the higher the price the more tax revenue is...
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