Inflation and Grocery Store Owners Essay

Submitted By ldenson
Words: 583
Pages: 3

Fundamentals of Macroeconomics 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.
Unemployment rate a percentage of workforce unemployed but are looking, and wants to work. The unemployment rate fluctuates depending on how well or bad the economy is doing. Inflation Rate the rate goods and services are increasing. Items in high demand the cost can increase or decrease, depending on how much supply in on hand. Interest Rate the percentage a lender charges on the amount of money a person borrows. When a consumer buys an item on credit or borrows money the lender charges an interest rate for that item or card.

When consumers purchase groceries this activity affects the households, businesses, and the government. Businesses will know what items are in demand and what supplies household need and want. Households are affected because items are needed for the household as well as the consumer want the items for their household. Grocery store owners rely on consumers to buy from their store because that is how their revenue is generated. The Federal Government relies on us to buy because it helps stimulate the economy.

Massive layoffs of employees affect everyone and the economic. When an individual is laid off from a job that person no longer brings a steady paycheck into the home. Layoffs also affect how much money the household has coming in now. Families have to make adjustment to the household budget because there is a decrease in the amount of money coming into the home. Massive layoffs also affect the economy, the more people the ecomics has layedoff, the more unemployment the government has to pay a person if they are eligible for unemployment. When people are laid off from work there is less money for to