Macroeconomics Case

The gross domestic product is a measure of country's value:

Goods produced + Service rendered + Government Spending + (Exports)-(imports) =GDP

Real Gross Domestic Product equals to the measure of the output of the Gross domestic Product that is acclimated for inflation or deflation.

The Nominal Gross Domestic Product differs specially on the aspect that the change in price is not accounted.

The unemployment rates is the quantity of people that are able to work due to their age, studies or other conditions but are currently unemployed.

Inflation rate is the variation that can be positive or negative of goods or service. Most of the time when the inflation is negative it's also call deflation but sometimes it's common to see a negative inflation.

Interest rate is the annual % divided by the quantity owed each month on borrowed capital.

Second Part

Purchasing of groceries

Massive layoff of employees

Decrease in taxes

The economy of a nation is a large number of factors linked each other and strictly related that easily become an ecosystem just as in the nature. All these items need to be monitored and adjusted to maintain a balance that allows all the parts of this system survive and if possible improve.

When consumers shop for groceries at a supermarket or anywhere using their money they actually jumpstart the system or on the other side finish a cycle. For somebody perform a productive task he must know that on the other side there's a consumer with the will to purchase that item so booth need each other. But sometimes groceries are produced overseas and become cheaper from other countries than from the consumer's country. This may be cause by a government decision to decrease the taxes to aid the free competition or regulate the industry to adjust their prices to the world standards and make the country competitive globally. On the other side the decision to lower taxes and open imports will decrease the need of employees to produce the products and this will produce a massive layoff of employees.

This high number of people without jobs and with less money to buy will impact directly on the sales of groceries and then the money that come from the taxes will be also lowered due to the recession.

All these changes in the economic system are just one part of the entire machine that keeps the economy alive. In this case the product used for the example is groceries, which are a basic part of the needs all humans use to live. But things might change when others products are taken in care as for example car production or even plane