Fundamentals of Macroeconomics ECO/372 Macroeconomics October 23‚ 2012 Fundamentals of Macroeconomics The purpose of this paper is to describe the following terms: gross domestic product (GDP)‚ Real GDP‚ Nominal GDP‚ Unemployment rate‚ inflation rate‚ and interest rate. Then we have to describe how purchasing of groceries‚ massive layoff of employees‚ and decrease in taxes affects government‚ households‚ and businesses. Learning and understanding the terminology of economics and what really
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A N N U A L R E P O R T / B C R P 2 0 0 7 CENTRAL RESERVE BANK OF PERU 13 GRAPH 1 Overall inflation and food and beverage inflation in December 2007 (Las 12-month percentage change) Data on inflation in China and Germany refers only to food. Source: Bloomberg. 12.0 15.2 16.7 8.5 6.2 10.8 6.6 4.8 6.1 6.0 5.7 5.4 8.4 7.8 6.5 5.7 5.1 4.5 4.2 4.1 3.9 3.8 2.8 2.1 Turkey Chile China Colombia India Brasil Spain USA Peru Mexico Germany England Total Food and Beverages In 2007 economic
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A First Look at Macroeconomics Economic Growth • Definition: the expansion of the economy’s PPF (outward shift) • Measured by the increase in real domestic product (also called real GDP) Costs Benefits Forgone current consumption Technological progress Slow growth rates = real costs (e.g. compromised health care‚ worse roads‚ less housing etc.) Greener environment (questionable) Fluctuations of Real GDP around Potential GDP: the Business Cycle The Okun Gap Definitions: • Actual GDP:
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The Fundamentals of Macroeconomics Before being able to grasp what economics has to offer it is important to understand the terms and concepts that are frequently used in economic. This paper will consist of two parts‚ part one will explain six terms; gross domestic product (GDP)‚ real GDP‚ nominal GDP‚ unemployment rate‚ inflation rate‚ and finally interest rate. Part two will consist of describing how three economic activities‚ such as purchasing of groceries‚ massive layoff of employees‚ and
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Advance Macroeconomics 1. Why the rich become richer and poor become poorer? It is because of the rising in inequality. He rich have got richer‚ and the poor have become relatively poorer. It is not that the real incomes of the lowest paid have fallen (though in some cases real incomes have been stagnant) but‚ they have fallen behind higher income earners. The gap between the highest paid and lowest paid has increased. In the past couple of decades it feels like the ‘rich have got richer
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and longest economic downturn since the Great Depression in the 1930’s. What we now call the Great Recession lasted from 2007 until 2009‚ and the U.S. economy is in the state of recovery currently. Many actions were taken to try to get out of the recession and rebuild the economy. So far the economy is getting stronger‚ but it will not be a continuous growth. Within the next year to two years‚ the U.S. economy will experience growth‚ but it will take on the bathtub effect which means that there will
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often called business cycles FACTS: 1. Economic fluctuations are irregular and unpredictable. 2. Most macroeconomic quantities fluctuate together. 3. As output falls‚ unemployment rises. The AD curve shows the quantity of all g&s demanded in the economy at any given price level. Y = C + I + G + NX When an increase happened to C‚I‚G‚(NX or EX) - the AD curve shifts right. Why the AD Curve Might Shift ? * Changes in C * Stock market boom/crash * Preferences re: consumption/saving
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Macroeconomics explores trends in the national economy as a whole considering the study of the sum of individual economic factors. Industry is affected by factors such as GDP‚ unemployment‚ inflation‚ interest rates‚ and consumer price index. Fiscal (government) policy can help guide the economy toward a particular track without dictating a specific ending affecting tax‚ interest rates‚ and government spending (McConnell and Brue‚ 2005). Monetary policy attempts to achieve vast economic goals by
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Fundamentals of Macroeconomics Fundamentals of Macroeconomics Throughout this paper I will provide an explanation of the following terms: Gross domestic product (GDP)‚ Real GDP‚ Nominal GDP‚ Unemployment rate‚ Inflation rate‚ and Interest rate. Within this paper I will consider purchasing of groceries‚ massive layoff of employees‚ and decrease in taxes as examples of economic activities. I will then describe how each of these activities affects government‚ households‚ and businesses as well
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OF SYDNEY ECON1002 INTRODUCTORY MACROECONOMICS Mid-semester Exam Semester One‚ 2012 Instructions: ________________________________________________________________________________ Time allowed: 60 minutes (plus 5 minutes reading time). The exam consists of 2 sections. Section I includes 10 multiple choice questions worth 1 mark each. To answer in this section‚ mark the letter representing the best response on the accompanying multiple choice answer sheet. You must use a pencil for the machine
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