Fundamentals of Macroeconomics Paper

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Fundamentals of Macroeconomics Paper

Part 1
Describe the following terms in your word.
• 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.

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