ECO 372

Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Write a minimum of a 800-word paper in which you:

1.  Describe the following terms in your own words.

·         Gross domestic product (GDP)

·         Real GDP

·         Nominal GDP

·         Unemployment rate

·         Inflation rate

·         Interest rate

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.

Be sure to format your paper in accordance with APA guidelines.  You must cite and reference all sources used, including the textbook and even if you are paraphrasing material (putting it in your own words).

Submit your paper and the Certificate of Originality as separate documents to the Assignments page.