logo image

Fundamentals of Macroeconomics Essay

Fundamentals of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

Macroeconomics In this essay I will describe the fundamentals of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

GAP, unemployment rate, inflation rate, and interest rate. Also I will be explaining how some common occurrences such as buying groceries, massive layof

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

fs, and a decrease in taxes affect the government, businesses, and even you. Lets start with GAP. What is GAP you ask? GAP stands for Gross Domestic Product and represents the total market value, in dollars, of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

goods and services. There are 4 main components that affect GAP; consumption, investment, government spending, and net exports.

Consumption is very straightforward and it Just means the total number, in dollars, of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

goods and services purchased by households. On the opposite side what do you think government spending is? You got it, it’s the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

money used by the government to buy goods and services as well. While the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

money spent on additional production is labeled as investment. Net exports are the only component that is kind of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

tricky. To get the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

spending for net exports you take the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

goods and services that are produced in the United States and abduct the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

goods and services purchased over seas and abroad.

All of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

these components represent the flow of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

the economy, Now that we understand what GAP is in a nutshell lets move on to another concept. All GAP does is measures final output. Final out put is goods and services measured in there final use. Any goods and services not in there final use are considered intermediate goods. So any intermediate goods (I. E. Wheat sold to a wheat company or cotton to a sock company) are not calculated into total GAP. There are 2 different says to represent final output, real GAP and nominal GAP. Nominal GAP is the amount in today’s dollars of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

GAP.

Real GAP is the nominal GAP plus the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

money it would take to account for inflation. Unemployment rate, inflation rate, and interest rate are my next points of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

discussion. Unemployment rate is the rate of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

people in the economy that do not have Jobs. When there are to many workers and not enough Jobs the ratio of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

that is how we find the unemployment rate also taking into account that people who are UN able to work. (I. E. Kick and drug addicts) Inflation rate is the percentage that money grows over any given point of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

time.

For example if I buy a gallon of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

milk at 3 dollars this year and next year I buy the same gallon of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

milk for 3 dollars and 25 cents, than the rate of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

inflation for that gallon of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

milk would be about 8%. Interest rate is the amount of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

money, in percentage, charged for its use. That can also be broken down to real and nominal interest rates. Nominal interest rate is the rate of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

interest charge to the barrower now at this current day and real interest rate is calculated by the nominal interest ate minus the inflation rate.

By Standard massive lay-of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

f, and a decrease in taxes can cause ripples in all levels of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

the economy. If I were to buy a bag of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

groceries that money turns into prof

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

it for the business. That prof

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

it turns into investing into new products. With companies making more money from new product the economy can grow which can cause the government to increase taxes to help slow down unnecessary spending and decrease inflation. With a massive lay-of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

f it will slow spending down because people are not making as much money as before.

The repercussions of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

that is demand goes down and businesses start to fail but on the bright side it would cause the government cut taxes and increase spending to help boos the economy out of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

the rut that caused the mass lay-of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

f in the first place. A decrease in taxes will cause more consumer spending. When taxes are decreased the government can’t spend as much as they want or need to on public services such as roads and school. This, in turn, can cause unemployment rates to go up from the local government Jobs and contracts that loud seize to exist.

It will also encourage consumers to spend more money causing the economy to inflate. As you can see we covered a lot of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

basic concepts in the realm of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

macroeconomics. Even with the little bit of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

knowledge in this paper we can see that economics is all intertwined with itself. There can never be one thing without the other. If there is the economy becomes unbalanced and things start to get bad. I hope you have enjoyed my paper on the Fundamentals of

Need essay sample on "Fundamentals of Macroeconomics"? We will write a custom essay sample specifically for you for only $ 13.90/page

Macroeconomics! Reference Colander, D. C. (2010). Macroeconomics (8th De. )

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy