Part 1 & 2

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.

Write a 700- to 1,500-word paper summarizing the results