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Fund of Macroeconomis Essay

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Fundamentals of Macroeconomics

August 12, 2013
Blake Bennett

Fundamentals of Macroeconomics
Macroeconomics is a part of economics which studies the behavior of the economy. This study helps economist, governments, and individuals set, understand, and influence the way we buy, sell, and trade products, the number of people a company will higher, and how much product will be produced. Macroeconomics is a part of our everyday lives whether we realize it or not.
Part of understanding macroeconomics is the understanding of the Gross Domestic Product (GDP), the Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate and how each of these relates to and affects government, households, and businesses. This is what this paper is going to help to explain.
The Gross Domestic Product or GDP is commonly used as an indicator of the health of a country as well as to gauge a country‚Äôs standard of living (Gross Domestic Product - GDP). The GDP is an accumulated mesure of the market value of all goods and services produced by the economy durning a set amount of time. These goods and services include products used for personal consomption, such as food and beverages, government purchases, such as wepons for military use, construction costs, and the exports of foreign trade. What the GDP does not measure is the products sold or produced that is not reported to the government (such as black market trades, the production or purchas of illeagle substances, and prostutution).  
The Real GDP, often referred to as "constant-price", "inflation-corrected," or "constant dollar GDP" is defined as an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices.   (Real Gross Domestic Product (GDP)). In short the Real GDP is a meassure of what the GDP would have been had prices not changed. The Real GDP helps to inform us how many products are being produced and to compute how...

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