Fundamentals of Macroeconomics

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Fundamentals of Macroeconomics
ECO 372 – Principles of Macroeconomics
University of Phoenix
Facilitator: Kenneth Lethere
July 10th, 2012
Fundamentals of Macroeconomics
Intro:
In the vast universe of economics, making sense of the different terminology used regularly in the business can be a difficult and time consuming task, but it will eventually improve one’s chances for success with the different paces that the purchaser’s interest will peak and bottom out, and how that can affect not just the particular retailer, but the economy as a whole when customer interest is at all time lows and money is harder and harder to find. Gross Domestic Product or GDP:
Gross Domestic Product, or “GDP,” is the official measure of goods and services that are produced in a specified period, within a country. Real GDP can measure the value of goods and services that are shown in the price graphs of a base year. Nominal GDP can measure the value of goods and services that are shown in current prices. The unemployment rate is the average percentage of people living on unemployment benefits when put against the percentage of people employed. The inflation rate is a measurement of the percentage rate of price level changes or increases of price indexes, usually over a period of one year. An interest rate is the rate that is set by a lender to pay back money that the borrower has requested.

Real GDP:
There are many economic activities affected by different areas that impact the state of the economy. When a customer buys food at the grocery store, they are making a dual investment by helping the economy and the retailer they purchase from as well as themselves and their families with the means to survive. The business who supplies products becomes a benefactor by providing goods, services, and jobs to individuals in the community. The government is normally…...

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