Gross Domestic Product: This is a monetary value placed on all the finished goods and services produced within a national boundary. This number is calculated every year and is used to measure the economic health of a country.

Real GDP:

The real GDP takes into consideration inflation.

Nominal GDP

Nominal GDP figures are not adjusted for inflation and are used for comparative purposes.

Unemployment Rate

The unemployment rate examines the rate at which employable people are actively earning money at a job.

Inflation Rate

The inflation rate is the rate at which money loses its value due to overproduction.

Interest Rate

The interest rate is the rate at which money can grow which is paid by borrowers. Time an principle investment are used to contextualize this rate.

Part

The purpose of this essay is to explain how three different activities may affect the economy. This essay will examine: 1. The purchasing of groceries 2. A massive layoff of employees and 3. A decrease in taxes as the three activities to evaluate. Each one of this actions will be evaluated on how it affects the government, households and businesses.

Purchasing Groceries

Buying food and supplies at the grocery store is an essential part of the economy. Everyone within this system benefits when prices are accurate and reflect an honest market. The exchange of goods, and in this case, essential, life bearing goods, is the basis for the economy and creates a baseline trail of sound and fundamental exchange that can...

Since groceries are essential to many people's lives this economic exchange provides some interesting details that help form and shape economic attitudes towards the subject.
Purchasing groceries is, for the most part, a non-governmental activity. Although products are taxed and regulated by the government, this is only a small portion of the total economic picture. Households contain people who must be fed in order to live, so groceries provide a solution to a very important problem. Regardless of any economic system, people will need to eat and find food. Businesses tend to benefit the most off the purchase of groceries. Food can be very profitable when it is scarce. Businesses need grocery shoppers however to keep their business going, and a symbiotic relationship must be established with its customer base in order to realize any economic success or congruity.

Massive Layoff of Employees

Unlike purchasing groceries, any massive layoffs can cause acute and sudden problems within an economy. Layoffs cause panic, stress and fear into the communities that they affect and have some serious rippling effects that may go beyond the local environment. The life cycle of the economy begins at the consumer level, and it should be expected that many reverberations will occur in any community that has experienced massive layoffs. Although short-term panic and recession can usually result in this type of an event, many times the economy grows stronger when this occurs acting as a purging mechanism to cleanse the economic system of its unnecessary components.

The…