Fundamentals of Macroeconomics Throughout this paper I will provide an explanation of the following terms: Gross domestic product (GAP), Real GAP, Nominal GAP, 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 […]

Explain the concept of potential output and why actual output can differ from potential output? (2 marks) Potential output is the amount of output that an economy can produce when using its resources such as capital and labour, at normal rates. Potential output is not a fixed number but grows over time, reflecting increases in both the amounts of available capital and labour and their […]

The chosen article from Wall Street Journal newspaper which is related to macroeconomics is “M&A Milestone: $101 Billion Deal For ABN Amro Group Set to Dismember 183-Year-Old Bank; Will Buyers Regret It? ” by Jason Singer and Carrick Mollenkamp in October 2007. As a brief summary of the article, the largest banking transaction is expected to settle at present, consequential of the unattachment of one […]

Economics studies How society manages its scarce resources social welfare ethical use of resources protection of workers’ rights 5 points Question 2 1. GAP Is the Gross Domestic Price Index Measures the market value of all final goods and services produced in the U. S. In a given year Measures the cost of inputs to factories in a given year Measures the unemployment rate Question […]

Since the financial crisis in 1998, Russia has been experiencing impressive economic growth due to the collaboration of monetary and fiscal policies that stabilized the performance of major economic indicators up to this day. Many economists regard the impressive performance of Russia as part increase of the volume of investment in the said country. On the other hand, some says that the notable growth of […]

Jerry L. Robinson ECO/372 JUNE 07, 2012 CHAD McDermott Fundamentals of Macroeconomics Paper Gross domestic product: is the value of all goods and services produced in a country in any given year or specific time period. This is measured in dollar amounts and basically the higher the GDP, the better the economy is for that country. Real gross domestic product: is nominal Gross domestic product […]

Summary In accordance to the formulation of latest economic data juxtaposed with macroeconomic principals and theories it can be stated that at the start of 2006, the People’s Republic of China officially proclaimed itself as the fourth largest economy, determined by USD-exchange rate leaving behind France and the United Kingdom. The People’s Republic of China has an economy, which is graded as the fourth largest […]

There are other factors of an economy such as externalities; these are benefits or costs that are received by parties or human beings that are not involved directly in a transaction. External benefits are somewhat beneficial but external costs usually cause problems; these are usually caused by pollutants emitted from factories and other service providing plants. In this period of time, the world is undergoing […]

With the decline on the disposable income of every household in the economy, domestic consumption started to deteriorate creating a negative impact on various industries including the housing industry. It was identified based form the data collected by the Bureau of Labor and Statistics that the compound annual rate of the housing industry’s CPI for February 2008 was equal to 2.8 percent, with November 2007 […]

Fundamentals of Macroeconomics Paper There are a number of economic activities that are directly related to the government, households, and businesses. With these economic activities you can also see the flow of resources from one entity to another. A few of the most common of these activities are the purchasing of groceries, a massive layoff of employees, and a decrease in taxes. These three activities, […]