FUNDAMENTALS OF MACROECONOMICS
Gross Domestic Product (GDP) - the monetary value of all the finished goods and services produced within a country's borders in a specific time period. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
A GDP is all the monetary value of all the good and services produced within a country to include investments, exports minus the imports, and both private and public consumption. The GDP show the economic health of a country.
Real GDP- An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices.
A real GDP shows the GDP but is adjusted from the changes a country has throughout the year and shows a more exact number.
Nominal GDP- A GDP figure that has not been adjusted for inflation
A nominal GDP is the GDP number that has not be adjusted with the inflated costs throughout the year it is what is current.
Unemployment Rate- The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
An unemployment rate is a total percentage of people that are unemployed but they are still want to work and that are actually looking for work.
Inflation Rate- The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
It is the frequency of the prices for general goods and services are rising and at the same time the purchasing power is falling. If the prices rise fewer people can afford to purchase these goods or services.
Interest Rate- The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).
A percentage charged by a lender (ex. a bank) to the borrower for the use of the assets (ex. cash). The amount is usually charged once a year it is called an annual percentage rate (APR).
When purchasing groceries you effect the government by your money being recycled into the economy. It affects your household by although you may have less money to purchase other things