Assignment:
Part 1
Describe the following terms in your words.
· Gross domestic product (GDP)
· Real GDP
· Nominal GDP
· Unemployment rate
· Inflation rate
· Interest rate
Part 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.
Write a 700- to 1,500-word paper summarizing the results.