fundamentals microeconomics

 

Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

 

 

 

Part 1

 

 

 

Describe the following terms in your word.

 

 

 

• Gross domestic product (GDP)

• Real GDP

• Nominal GDP

• Unemployment rate

• Inflation rate

• Interest rate

 

 

 

Part 2

 

 

 

Consider the following examples of economic activities:

 

 

 

• Purchasing of groceries

• Massive layoff of employees

• Decrease in taxes

   

  Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

   

  700 word count