In: Business and Management

Submitted By truc
Words 1023
Pages 5
Truc Tran
August 25, 2014
Jeffrey Lehrer

FUNDAMENTAL OF MACROECONOMIC Economics is the study of what people do to coordinate their want and desires through production, distribution, and consumption of goods and services. To understand economics, one has to understand the basic fundamentals of economics. Economics is based on two groups’ macroeconomics and microeconomics. Macroeconomics is the decision-making of an economy as entire picture. Some of the fundamentals of macroeconomics that include Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The first subject that will be cover in macroeconomics is Gross Domestic Product (GDP) is the standard living of a country through its goods and services. These goods and services are produced by any given country in any given time. These goods and services are sometimes the primary source of economic stability of any given country. Real GDP is the market prices primarily on a specific year (Colander, 2010).
One will focus on the purchasing of groceries, massive layoff of employees, and decrease in taxes affect the government, businesses, and households. It was once said by President Calvin Coolidge that “The business of America is business” (Colander, 2010). For most countries its economy is broken down in to three parts: the government, households, and businesses. We will cover each one briefly and explain how each one has an effect on the other. Household are the target of a business through its goods and services. In other word we are the consumers. Consumers are what make business thrive to success. Businesses are the primary source of goods and services. Their main objective is to sell to households and a government. Finally the government, they are responsible for making business with foreign countries and makes…...

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