Economic Growth Essay

Consider the following examples of economic activities acquire of groceries Massive layoff of employees Decrease in taxesDescribe how separately of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for every(prenominal)(prenominal) activity. Relate at least one current event to the activities. Inflation rateIt is based on the rising price of good and services and falling purchasing power. This measurement shows how fast currency loses value. This is cypher by how fast prices for goods and services rise over time, or how much less one unit of exchange buys now equated to one unit of exchange at a given time in the past. Real GDPReal variable, such as the real pertain rate, is one where the effects of pretentiousness have been factored in. Real Gross Domestic Product measures the worth of all the goods and services produced utter in the prices of some base year. Nominal GDPA nominal variable is one wher e the effects of inflation have not been accounted for. The Nominal Gross Domestic Product measures the worth of all the goods and services produced stated in current prices.Macroeconomics is perceived as a relatively new concept considering the lack of recreate in studying the frugality before the 1930s. However, a specific terminology was created that dealt with the problems that is faced by the economy daily. That has aided in a better understanding the differences between macro and microeconomics. Macroeconomics speaks of the aggregate economic facotors and entails employment, interest rates and gross domestic product of nations. Purchasing of GroceriesThe amount of money spent in each household differ based on the size andspecific needs of the family. A larger family leave behind have a higher grocery bill in most cases. The government palys a major(ip) role because grocery items are taxed and get out dtermine how much groceries families may be able to purchase. Businesses are besides abnormal by consumerswhen sales decrease due to their inability to shop due to price increase. This will bring in less revenue for the business. Massive Layoff of EmployeesA massive layoff is an unpleasant occurrence for all involved. This is an indication of the economic state of the company as it implies downsizing of the company. In this situation, the company will gossip more responsibility on the few workers that they do have. They would not be able to operate sufficiently. This would jolt households this represents a decease or complete (cut) in income. The standard of living of affected households will drib as a result of being laid off. The government will also be affected by massive layoff of employees due to the them having to pay unemployment to these individuals.