# The Economy of Today - Essay Example

Summary
Macroeconomics in general deals with the behavior of the entire economy, incorporating booms and recessions, the gross output of goods and services, the increase in output, inflation, employment level, balance of payment status and exchange rates. All the policies and actions…

## Extract of sample "The Economy of Today"

Download file to see previous pages If the GDP is freed from the chances being affected by inflation, then constant prices need to be maintained. This also helps us to compare the status between two time periods. The resultant GDP reached is called real GDP (nominal GDP adjusted for price changes). GDP can be measured in three ways: by calculating the gross final goods and services produced within the nation at a given period of time; from the income side, by calculating the income generated at every stage and by summing up the value added at each stage of production. Its identity may be written as:
The employment rate is the ratio of employed people to the total population. It is actually the percentage of potential employees actually employed. When a nation has a higher employment rate it is likely that it will have a higher standard of living. It is the capacity of a country to engage its people in work and thus generate income for itself. Unemployment is one of the major concerns of the governments of different nations.
Another parameter which duly affects the economy and mainly the GDP is inflation rate which may be defined as the rate of growth of price index. This is equivalent to the rate of fall in purchasing power of money. If P1 is the price level in year 1 and P2 is the price level is year 2 (P2>P1), then the rate of increase in price level (inflation rate) from year 1 to year 2 is calculated by the following formulae:
Interest rate in an economy essentially denotes the lending rate of banks. It is the opportunity cost of investing in a certain venture. The gain sacrificed by not investing the same amount in another alternative venture or scheme is the opportunity cost. When an individual X (say) lends money to another individual (Y), he is likely to charge an annual interest which is either equal or more than the return gained by investing the amount in some other venture, possibly the bank. If he charges less then he would be a loser.
Cite this document
• APA
• MLA
• CHICAGO
(“The Economy of Today Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
The Economy of Today Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1551972-the-economy-of-today
(The Economy of Today Essay Example | Topics and Well Written Essays - 750 Words)
The Economy of Today Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1551972-the-economy-of-today.
“The Economy of Today Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1551972-the-economy-of-today.
Click to create a comment or rate a document

## CHECK THESE SAMPLES OF The Economy of Today

### Terrorism Today

...?Terrorism is not a recent phenomenon as it has occurred in almost every country throughout the world, but with the developments in the field of science and technology, terrorist organizations of today have access to weapons of mass destruction such as nuclear devices, biological weapons, poison gases and computer viruses and hence the destructions caused by terrorism is now of a larger magnitude (Carter, 1998). Terrorism has been given various definitions depending on the view point of the concerned people. While those against terrorism define it as a crime and an inexcusable action, those supporting terrorist activities see it as a justified reaction to oppression, as a holy duty and as effective tactic for the weaker...
5 Pages(1250 words)Research Paper

### Today Media

...and emotional responses (Leshner, Bolls & Wise, 2011, p. 77). These only show that advertising is effective way of communicating ideas, information and other relevant social concerns. In particular, advertising activities are integral parts of marketing and other related social interactions that aim to promote certain ideas, opinions or products and services. For a long period of time, ads are used to convey significant information and people are learning many things from them. The very proof why ads are effective is their continuing existence in the media, and other related mass communication today. If they are not that effective, then they should have been long banished and should never be the primary options on the...
8 Pages(2000 words)Research Paper

### The economy today

...is that there are two independent processes acting on the economy: a long-run process described by the Solow model that determines the rate of growth of GNP; and a separate short-run process that causes temporary short-run fluctuations over several quarters or years. Milton Friedman had said inflation was just a monetary phenomenon and macro policy couldn't shift the economy to higher levels of employment. The impact from macro policy debates starts the macro section with a treatment of long-run growth as a function of supply side productivity factors. It is then followed, though, by the old standard aggregate demand and supply analysis that emerged in the late 1970s. The question and subject matter of...
5 Pages(1250 words)Essay

### Diabetes Today

...levels of adherence to diet and glucose testing than Caucasian youths. The conclusions that can be drawn from this study is that African-American youths with diabetes may be at a higher risk for poor glycemic control due to the higher prevalence of single parenting and lower levels of adherence. IV. Treatment for those with Diabetes today A. Diet Control In NIDDM, the main treatment approach would be diet control, since most of the patients with insulin resistance are overweight and have an increase in VLDL and LDL, associated with decreased HDL, and presence of cholesterol and hypertension. The goals of diet therapy are: to maintain glucose at near normal levels, attain optimal serum lipid levels and calories...
16 Pages(4000 words)Essay

### History Today

...History Today Prepared by Submitted to Length 1371 words Introduction The causal ordering is defined in a complete structure. In history the compilation of the answers for the ‘what if’ questions for the incidents in the history can be termed as counterfactual cause. There will be a question about its identification in the mechanisms of a system. There are several techniques to identify the accomplishment. The explication of causal ordering is used to analyse the causal counterfactual conditionals, which are explicitly used Ferguson. The counterfactual proposition can be articulated through the device of a belief contravening supposition. The causal ordering follows to provide modal categories for the factual...
5 Pages(1250 words)Essay

### Chinas Economy Today

...﻿China’s Economy Today Comments on Structure There were uses of acronyms without duly spelling out terms the first time these are used (examples: SMEs. SOEs. GDP. GST); Citation was not consistently focused on using footnotes all throughout (example: p.4, citing Lang); Footnoting structure was confusing (why the need for decimals: 1.1, 2.2 then 7. 7.8) Comments on Contents The author effectively and directly answered the questions chosen immediately as stipulated in the first few sentences of the introduction; However, one suggests that as a general rule, an overview of the topic should be provided in the first few sentences of the introductory paragraph relating to China’s economy in...
1 Pages(250 words)Essay

### American economy today

...American economy today Grade (29th, Oct. American economy today The of the American economy is not pleasing. Though some economic growth has been recorded of late, a poorly performing economy remains the reality. Some major improvements have been noted in the recent months, with the state of unemployment in America reducing to 7.8% from an initial standing of 8.1% by September 2012 (Rugaber, 2012). According to the USA bureau of labor, there were major changes in employment in the transport, warehousing and health sectors, which significantly reduced the rate of the unemployment (Rugaber, 2012). Thus, the number of the unemployed people...
1 Pages(250 words)Essay

### The biggest challenge facing your national economy today

...Essay, Business Topic: The biggest challenge facing your national economy today The economy of United s is the largest economy in the whole world and is considered to be one of the super powers. The United States is made of a large number of states, each having its own local government and all these are then governed by the federal government which is headed by the president of United States. It is the largest multicultural nation of the world along with being the fourth largest country in terms of land area and population. Its currency, dollars, is treated as an international currency and most of the international transactions of foreign trade and exchanges are done in...
2 Pages(500 words)Essay

### The role of slavery the global economy today

...The role of slavery the global economy today Slavery in the modern day era is a reality and hasbecome a cause of concern for the human rights organizations as it is being done openly. Middle East, Asia, Europe and Africa are the worst affected by this issue with slaves in the form of laborers being taken from Asia and Africa and moving to the Middle East as well as Europe to work. Their employment is however characterized by little or sometimes no pay at all, forced labor, inhumane practices such as beating and manhandling as well as being locked up and not being fed. These individuals are providing labor at really low cost or free of service in some cases and incur little expenses simply in the form of...
3 Pages(750 words)Essay

### The Performance of the U.S. Economy Today

...The Performance of the U.S. Economy Today Introduction Macroeconomic problem is generally encountered by an economy whenit fails to achieve the goals of stability, full employment and growth. US economy faced many downturns during the financial crisis. The economy geared its performance to recover from the crisis during the period of 2008 and 2009. It took four years for its revival from the financial trauma.US economy can be graded by considering various perspectives that affects its performance and productivity. It is considered as the 12th freest economy with economic freedom score of around 76.2. Discussion US...
4 Pages(1000 words)Essay
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

## Let us find you another Essay on topic The Economy of Today for FREE!

This Website is owned and operated by Studentshare Ltd (HE364715) , having its registered office at Aglantzias , 21, COMPLEX 21B, Floor 2, Flat/Office 1, Aglantzia , Cyprus.
• FAQ
• Blog
• New Essays
• Essays
• Miscellaneous