Macroeconomics Paper

2140 Words Oct 31st, 2011 9 Pages
CRAM Exclusive
Essay Sample
Macroeconomics Paper Lorelei Michelle Bullock Rasmussen College Author Note This research is being submitted on May 25, 2011, for the Macroeconomics course at Rasmussen College by Lorelei Michelle Bullock. Gross Domestic Product (GDP) The United States economy completed its sixth consecutive quarter of recovery at the end of 2010, following the longest recession since the Great Depression. The recovery began in the last months of 2009 and continued in the first half of 2010. However

middle of document…

What GDP represents and economic production and growth, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the expanding economy.

A change in GDP, whether up or down, usually has a significant effect on the stock market. So it is easy to understand why a bad economy usually means lower profits for companies, which in turn means lower stock prices. A common worry for investors is negative GDP growth, which is one of the factors economists use to determine whether an economy is in a recession.

Business Cycles

Most business cycles have last three to five years from peak to peak. The average duration of an expansion is 44.8 months and the average duration of a recession is 11 months. The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables. A business cycle is not a regular, predictable, or repeating phenomenon. Its timing is random and, to a large degree, unpredictable. A business cycle is identified as a sequence of four phases: peak (when GDP reaches its peak and starts to fall), recession (when GDP is falling over time), trough (point in time), and recovery/expansion (a GDP that has never been reached before).

Business Fixed Investment

The definition of business fixed investment is the
CRAM Exclusive
Maple61170Eagle

Related Documents

  • Fundamentals of Macroeconomics Paper

    Fundamentals of Macroeconomics Paper Alyssa Arellano ECO/372 August 25, 2014 Yohannes Mariam Fundamentals of Macroeconomics Paper The fundamentals of macroeconomics affects how the whole world operates, affecting everyone’s lives in one way or another. “The U.S. economy can be divided into three sectors: household, businesses, and government” (Colander, 2013, p. 55). Economic activities such as purchasing of groceries, massive layoff of people, and decrease in taxes play a

    Words: 819 - Pages: 4
  • Project Paper Macroeconomics

    Project Paper 1. What is the gross domestic product? Gross Domestic Product, or GDP, is the total market value of final goods and services produced within an economy in a given year. It is the most common measure of an economy’s total output. 2. When prices change, how do we measure real income? When prices change we measure real income with 3. What is unemployment? Why can’t it be driven down to zero? Unemployment is when you don’t have a job. Unemployed people are those who don’t have a

    Words: 1154 - Pages: 5
  • Essay on Macroeconomic

    Macroeconomic Picture of Agriculture sector in Indian Economy Theodore Schultz began his acceptance speech for the 1979 Nobel Prize in Economics observing: “Most of the people in the world are poor, so if we knew the economics of being poor we would know much of the economics that really matters. Most of the world's poor people earn their living from agriculture, so if we knew the economics of agriculture we would know much of the economics of being poor” (Shultz, 1979). Existing empirical

    Words: 661 - Pages: 3
  • Macroeconomics Essay

    of levels in price. This is the part of economics that features particular factors of individual choices. Like change in microeconomics, macroeconomics is the focused area of economic development and changes in general income. Each change in shift affects equilibrium of price, quantity, and consuming behaviors. Concepts of microeconomics and macroeconomics help to gage factors that affect these shifts in supply and demand, which in result helps to understand why the change in price, quantity

    Words: 678 - Pages: 3
  • Essay about Macroeconomics

    have a cover sheet with the following information: a. your name; b. the course number; c. the section number; and, d. the date, 2. You may either copy and paste the questions and the appropriate graphs into your paper, or you may insert your coversheet, your answers and your references into THIS document, renaming it as required in the instructions. 3. To any graphs, or charts, you may add whatever arrows or other indicators that you feel are necessary to illustrate

    Words: 2375 - Pages: 10
  • Fundamentals of Macroeconomics Essay

    personal standpoints. References: Colander, D. C. (2010). . Retrieved from The University of Phoenix eBook Collection database. ----------------------- 2012 Fundamentals of Macroeconomics Paper University of Phoenix Created By: Nichole Chambers Professor: David Euler

    Words: 1029 - Pages: 5
  • Fundamentals of Macroeconomics Essay

    Fundamentals of Macroeconomics paper This paper will consist of two separate parts, the first part will be defining six terms which are; * Gross domestic product (GDP) * Real GDP * Nominal GDP * Unemployment rate * Inflation rate * Interest rate The second part will consist of three different economic activities in which I will describe how each affects the government, households, and businesses. The three activities include; purchasing of groceries, massive layoff of

    Words: 843 - Pages: 4
  • Fundamentals of Macroeconomics Essay

    Fundamentals of Macroeconomics Macroeconomics examines the structure and performance of the economy. Economic theory states that we live in a world of scarcity; we do not have enough natural resources or time to fulfill our unlimited desires. Economics studies how we allocate our scarce resources. Therefore, this paper will discuss many fundamentals of macroeconomics. Gross domestic product (GDP) is a monetary tracker that is used by the government to tracker the spending of the citizens as

    Words: 728 - Pages: 3
  • Essay on Macroeconomics

    Retrieved May 21, 2016, from https://www.energystar.gov/ia/partners/prod_development/downloads/EEDAL-145.pdf Gallagher, Kelly Sims and Erich Muehlegger. "Giving Green to Get Green: Incentives and Consumer Adoption of Hybrid Vehicle Technology." Working Paper, John F. Kennedy School of Government, Harvard University, February 2008. Sexton, S., & Sexton, A. (2011, April 21). Conspicuous Conservation: The Prius E ff ect and Willingness to Pay for Environmental Bona Fides. Retrieved May 21, 2016, from

    Words: 3193 - Pages: 13
  • Macroeconomics Definition Essay

    Macroeconomics (from Greek prefix "macr(o)-" meaning "large" + "economics") is a branch of economics dealing with the performance, structure, behavior, and decision-making of the entire economy. This includes a national, regional, or global economy.[1][2] With microeconomics, macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists

    Words: 668 - Pages: 3