Macroeconomic Essay

745 words - 3 pages

First Draft of Fundamentals of Macroeconomics Paper
There are numerousissues that actually affect our economy, such acts as gross domestic product (GDP), nominal GDP, real GDP, inflation rate, unemployment rate, and as well as interest rates. All of these area actually has 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 Products is, is basically the market value of services and goods that are produced in the country at any given time.Which this is usually considered an indication of the normal living situationwithin a country. Real GDP on the other hand is measure of the value of ...view middle of the document...

Buying groceries affects households because thousands of people struggle every day to provide for their families and when the cost of goods constantly goes up but wages don't this makes it really difficult to live. Massive layoffs affect people's standard of living and that is what the GDP is centered around. Having to many layoffs can have a dramatic effect on the unemployment status which causes the economy to have a higher unemployment rate which causes salaries to go down so what their spending is down. Massive layoffs has a vicious cycle and globally in 2012, 200 million people are without employment and this shows the slowdown in employment growth, which means companies aren't hiring and people aren't spending like the where. Massive layoffs affect the economy dramatically because it has a huge impact on consumer spending which in my opinion makes the world go around. If no one is buying then production is down and that's how layoffs happen, and this affects households, businesses, and the government.
Tax decreases can stimulate economic growth because if people are paying less in taxes, they have more money to spend. It has been proven over the years that tax...

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