Question

1. Define Gross Domestic Product, Unemployment, and Inflation.

2.  Find a current event article that discusses the current state of the US Economy. It should include discussion of GDP or Unemployment or Inflation.  

3. Provide an outline (five key points) about the article you found and read.  Make sure to include the Title, Date, and Source of your article.  

Answer 1

Answer 1 -

GDP - Gross domestic product is the market value of the final goods and services produced within the domestic borders of the economy. It is also considered as the income of the economy in domestic terms. It can be calculated by income appraoch , expenditure approach and value added approach. It does not included the value of value of intermediate goods in its calculation.

Unemployment can be defined as the state of person when the person wants to work but he is not able to finds the job on the current market rate or as per his requirements. These people must have actively looked for the job in the past 4 weeks. They are a part of Labor force.

Inflation can be defined as the state of the economy in which the average price level of the goods and services rises in the economy. This inflation can be demand pull inflation caused by the sudden rise in the demand in the economy. It can be cost push inflation which is caused by the rise in cost of production leading to higher prices. The rate of inflation can be best measured by GDP deflator.