Fundamentals Of Macroeconomics Paper On Macroeconomics

Fundamentals of Macroeconomics Paper Macroeconomics is a study in which reflects the economy as a whole and the levels of total output, which is also referred to as national income. National income measures the value of an output produced in an economy over a period of time. In this paper gross will attempt to describe the economics related word terms such as gross domestic product (GDP), real GDP, nominal GDP, unemployment rate, inflation rate and interest rate in laymen. Also will describe how purchasing of groceries, how massive layoffs, and decrease in taxes can affect the government households and business. Gross domestic product GDP is the total market value of products and services produced within the borders of given country†¦show more content†¦This are products that are produced in a given period of time by property or labor located in the United States of America. The Measurement is calculated as a gross domestic product in constant dollar. Nominal GDP is reported to the public without the inflation adjustment to make it appear than this original value. Nominal GDP can be higher or lower than conventional GDP Theory. Nominal GDP are not accountable towards inflation that can be misleading. Furthermore Nominal GDP may increase due to either increased output in an economy, or increased prices in the economy Employment is the overall total number of people with a job, which in includes the employees, businessmen, and self-e employed/ entrepreneurs. The total number of employed can change over time due to several factors. According to Wise geek (2015) â€Å"The relationship between Gross Domestic Product (GDP) and unemployment rates can be seen by the application of Okun’s Law† Additional, â€Å"According to the principle established by this law, there is a corresponding two percent increase, in employment for every established one percent increase in GDP† (Wisegeek, 2015) Unemployment rate is the number of people who are willing to work, able to work and those who are looking for work that are unable to find work. The unemployment rate is one of the most scrutinized and monitored statistics. This is a result that most economist believe that when this increases it is clear sign that the