Sunday, August 9, 2009

How is real GDP affected by...?

How is real GDP affected in the US, by unemployment rate, inflation rate, and the federal fund rate? if one fluctuates does it have a direct affect on the other?



How is real GDP affected by...?tax credit





GDP has an affect on unemployment; rising GDP tends to reduce unemployment.



Rising GDP tends to cause a rise in the inflation rate (and vice versa).



Raising the federal funds rate tends to slow GDP growth (and vice versa).

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