Dinner Party Economics Pear Essay

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Dinner Party Economics Pear essay 1 The book Dinner Party Economics, by Evie Adomait and Richard Maranta, opens the first few chapters explaining the basic concepts of macroeconomics. The concepts of macroeconomics relate to the broader selection of economics involving the economies of nations. The concepts covered in the book include growth, inflation, unemployment, GDP, inequality, money supply, and different debts and deficits. The recent values of GDP, inflation, and unemployment are all strong indicators of recent events involving the Canadian Economy. GDP has always been a strong measure of economic strength as it is the account for all spending of the country, thus it being a strong economic indicator. As the economy has been constantly growing, the GDP has been following suit and growing steadily. In 2010, a recession hit the country and as the strength of the economy fell, so did the GDP. In 2009, the GDP was 1542.56 billion dollars. The year after, it dropped by roughly 200 billion, only to rise up again to 1778.63 in 2012. 1 The reason why GDP is so closely related to the strength of the economy is because it tracks all final spending. Since final spending relates to how much people are buying, how much the government is spending, how much investors are investing, and the net value of imports and exports, there is a strong correlation between the GDP and the economy’s strength. Although the GDP is a great measure, there is a lot more to consider such as inflation and unemployment. Inflation is also a very strong indication of economic growth as it represents the growth of the prices of goods and services. The reason inflation is related to economic strength is because the prices of goods and services determine the spending of consumers and all other spending in the country. As discussed earlier, the economy had a

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