Economics: Inflation and Groceries Massive Layoff Essay

Submitted By darinstudyessay
Words: 751
Pages: 4
Open Document
Running head: Principles of Macroeconomics

Principles of Macroeconomics
Name
University

Principles of Macroeconomics
Macroeconomics is the discipline of measuring the interactions between businesses, communities, and governments on a large scale. Gross domestic product is an important measure of a countries output to the global economy. GDP is an essential measure of a country’s economic health and an very important principle of macroeconomics. The formula to calculate GDP is listed below:

Goods produced + Service rendered + Government Spending + (Exports) - (Imports) = GDP

Real Gross Domestic Product equals to the measure of the output of the Gross domestic Product that is acclimated for inflation or deflation. The Nominal Gross Domestic Product differs specially on the aspect that the change in price is not accounted. The unemployment rates is the quantity of people that are able to work due to their age, studies or other conditions but are currently unemployed. Inflation rate is the variation that can be positive or negative of goods or service. Most of the time when the inflation is negative it’s also call deflation but sometimes it’s common to see a negative inflation. Interest rate is the annual % divided by the quantity owed each month on borrowed capital.
On the second part of the paper some things that are explained in the first part will make a complete sense when they become related with real life examples. I will show the link between the following economic activities:
Purchasing of groceries
Massive layoff of employees
Decrease in taxes
The economy of a nation is a large number of factors linked each other and strictly related that easily become an ecosystem just as in the nature. All these items need to be monitored and adjusted to maintain a balance that allow all the parts of these system survive and if possible improve.
When consumers shop groceries at a supermarket or anywhere using their money they actually contribute to the system or on the other side finish a cycle. For somebody perform a productive task he must know that on the other side there’s a consumer with the will to purchase that item so booth need each other. But sometimes groceries are produced overseas and become cheaper from other countries than from the consumer’s country. This may be cause by a government decision to decrease the taxes to aid the free competition or regulate the industry to adjust their prices to the world standards and make the country competitive globally. On the other side the decision to lower taxes and open imports will decrease the need of employees to produce the products and this will produce a massive layoff of employees.
This high number of people without jobs and with less money to buy will impact directly on the sales of groceries and then the money that come from the taxes will be also lowered due to the recession.
All these changes in the
Show More

Related Documents: Economics: Inflation and Groceries Massive Layoff Essay

Ed smith week 2 individual paper

Fundamentals of Macroeconomics There are numerous issues that actually affect our economy, such acts as real GDP, nominal GDP, gross domestic product (GDP), inflation rate, unemployment rate, and as well as interest rates. All of these areas actually have massive influences over how we purchase groceries, weather there will be a large amounts of layoffs to employees, and decrease in taxes. What Gross Domestic is basically the market value of services and goods that are produced in the country at any given…

Words 728 - Pages 3

Inflation and Grocery Store Owners Essay

Paper Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate all terms related to Macroeconomics. Gross Domestic Product (GDP) the value of goods and service produced by a country and reported quarterly. Real GDP measures value of production of economic modified for any price changes. Nominal GDP gross domestic product that reflect no adjustment for inflation. The GDP terms explain various values what a country sells regarding goods and services…

Words 583 - Pages 3

Fundamental Macroeconomics Essay

the affects of some economic activities on the government, households, and businesses. Gross Domestic Product (GDP) is the single most used instrument in measuring economic activity. The GDP is the total and final value of all goods and services produced in a market, measured over a one year span. GDP may also be referred to as the market value of final output. There are two types of GDP, real and nominal. Real GDP is referred to as the GDP that has been adjusted for inflation costs. Nominal GDP…

Words 854 - Pages 4

Week 2 Macro individual paper

domestic product) that everyone faces worldwide such as balance of trade, employment, government debt, and inflation worldwide. Gross Domestic Product It is the goods and services produced in a one year span. A countries growth has been measured through the GDP. The sales of goods and income earned can create total outputs to rise. Real Gross Domestic Product The total amount of inflation adjusted for the goods and services produced in one year. The dollar amount is adjusted to the Consumer Price…

Words 741 - Pages 3

What Are The Fundamental Of Macroeconomics

Fundamentals of Macroeconomics • Gross domestic product (GDP)- Gross domestic product is a country’s economic indicator. GDP measures the total output of services and products from boarder to boarder of the country. GDP is a measuring of the economy within a time period of the country. • Real gross domestic product (RGDP)- This adjusts inflation measures of the real value of products, services, and goods produced in a year. Real gross domestic product accounts for changes in price levels to…

Words 890 - Pages 4

Week 2 Assignment Macroeconomics Essay

changes in the GDP, or Gross Domestic Product. The GDP is known as an economic indicator to measure he total output, which includes everything that the country is producing by its people and the companies in the country. The GDP can be measured by two means, the nominal GDP and the real GDP. The nominal GDP is the measurement, which uses the existing prices to measure the raw amount. The real GDP is the measurement based on inflation. The unemployment rate is the rate of unemployed people looking…

Words 775 - Pages 4

Fundamentals Of Macroeconomics Paper

analysis of problems with bussiness cycles, inflation, unemployment, and growth. Macroeconomics targets the accumalated links between everyday household consumption ties in with income and how our government policies affect growth of society. Through this paper, I will be presenting three scenarios that civilians within society may encounter and how they interrelate with macroeconomics. These three activities are the purchasing of groceries, massive layoff of employees and the decrease in taxes. Firstly…

Words 374 - Pages 2

Fundamentals of Macroeconomics Essay

Fundamentals of Macroeconomics Part I Gross domestic product (GDP) In 1991 GDP became official measure of the economic health of US. Prior to this US used the gross national product (GNP), which did not provide accurate measure of economy of the US because they counted the people who worked for US abroad. With GDP it became focused on analyzing the production, investments, imports, and exports of US economy and it also includes the measure of employment rate. GDP could either be positive or negative…

Words 782 - Pages 4

Fundamentals Paper

Fundamentals of Macroeconomics Stacy M. Thompson Eco/372 February 2, 2013 Mr. Jack Karczewski Economic Activities How the following terms and activities have economic impact on the macro economy There are many different concepts and factors that explain the macro economy. Many factors play into what can positively or negatively affect the economic growth of the country. The following terms will be defined and explain the impact on the economy. Gross domestic product…

Words 696 - Pages 3

Government Activities Essay

several activities that affect the subcategories of economics such as government, household and businesses. A few examples that affect these subcategories are purchasing of groceries, massive layoff of employees and decrease in taxes and these activities can be interrelated to government, household and businesses. There is a flow of resources from one entity to another and can be considered as a “snowball” effect. Purchasing Groceries Purchasing of groceries affects government, household and businesses…

Words 926 - Pages 4