fundamentals of microeconomics


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.


    700 word count