Fundamentals of Macroeconomics Paper
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.