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ECO 372 Week 2 Individual Fundamentals of Macroeconomics Paper

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Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

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.

Writea 700- to 1,500-word paper summarizingthe results.

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