Eco 372 Week 2

Fundamentals of Macroeconomics

ECO 372

Part 1

Describe the following terms:

Gross domestic product GDP is the market value price of good or product that a country pays during a certain time of the year.

Real GDP is the output of countries products without measuring in inflation.

Nominal GDP is where the market value of goods or products is higher than Real GDP.

Unemployment rate is the rate of unemployed people who are faithfully seeking employment.

Inflation rate is the rise in prices and the lack of being able to purchase products.

Interest rate is the rate in which products are paid for at a different price depending on the rate given.

Part 2

Economic activities: Purchasing of groceries, Massive layoff of employees and

Decrease in taxes. The purchasing of groceries...