Macroeconomic Terms Essay

346 WordsDec 15, 20142 Pages
University of Phoenix Material Macroeconomic Terms Describe the following terms in your words. Term Definition Gross Domestic Product (GDP) Is the measure of the total value of the end results of products and services made in one economy during a certain time period. Real GDP Is the measure of one economies goods and services produced in a current time multiplyied by a specific year’s prices. Nominal GDP Is the measure of one economies goods and services produced in a curren time period and multiplying it by the current year’s prices. Unemployment rate The amount of people in an economy who can work and are looking for work but cannot find a job. Inflation rate Is the measure of the increase of goods and services in the economy or the decrease in the worth of currency. Fiscal Policy Is the process of stimulating the economy by controlling taxes and government spending to shift the aggregate demand to the right. Monetary Policy Is the process of stimulating the economy by controlling the money supply to shift the aggregate demand to the right. Aggregate Demand (AD) Curve Represents the shifts in demand for goods and services in the economy when the price level shifts. References Colander, D. C. (2013). Economics (9th ed.). New York, NY: McGraw-Hill/Irwin. Nominal GDP. (2014). Retrieved from http://www.businessdictionary.com/definition/nominal- GDP.html Real GDP and Nominal GDP. (2014). Retrieved from https://www.khanacademy.org/economics- finance-domain/macroeconomics/gdp-topic/real-nominal-gdp-tutorial/v/real-gdp-and- nominal-gdp Fiscal Policy. (2014). Retrieved from http://www.businessdictionary.com/definition/fiscal- policy.html Monetary Policy. (2014). Retrieved from http://www.businessdictionary.com/ definition/monetary-policy.html Monetary and Fiscal Policy. (2014). Retrieved from https://www.khanacademy.org/

More about Macroeconomic Terms Essay

Open Document