Sheehy 1

Kilian Sheehy
Economics
Amy Sydoruk
11/30/2016
Assignment 8 EQ
Nominal and Real values are similar, but different in the end. Nominal states the number side of
stating the value. Examples of this include That CD costs 18 dollars, I pay about $236 a month for
my car and so on and so forth. Real values, however, are the physical side of stating the value.
Examples of it include College tuition is going up more than about the value of a Honda CR-V or
Those tickets to AC-DC cost the same as 3 weeks' worth of food, etc.
Unemployment can sometimes make a massive impact on the economy. Economic losses from
unemployment are quite large, since they effect any and all goods and services that could be produced
by said unemployed. In 2015, the average amount of jobs created per month were about 241 jobs.
Inflation in the US rose from a 0.7% to a 1.6% since 2015.
Interest rates are significant to everyone, whether it'd be a saver, investor, cash holder or anyone
who relies on fixed-income. Short-term interest rates applies to an investment with a growth of less
than a year. Short-term rates apply to financial instruments such as Treasury, bills, bank certificates, etc.
Long-term rates apply to a financial asset that can span more than one year. These interest rates apply
to bonds, real estate and notes payable.
The reason why government fiscal policies exist is that they Keep incentives facing voters,
government officials and government employees. This is because of interest groups that can impose
costs on the general public or social goals other than economic efficiency are being pursued. The
decisions effect the economy by up-warding pressure on the price level and interest rates. However, the
interest-rate effects of fiscal policies lead to changes in private investment spending by businesses and

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individuals that partially, if not entirely, offset the output and employment effects of fiscal policy.
The FR maintains an interest rate target and adjusts the money flow as needed that rate as a
desired level.
Resources:
-Supplementary Resources by Topic. Real vs. Nominal Is One of 51 Key Economics Concepts
Identified by the National Council on Economic Education (NCEE) for High School Classes. "Real vs.
Nominal." Real vs. Nominal, High School Economics Topics | Library of Economics and Liberty. N.p.,
n.d. Web. 02 Dec. 2016.
-"Explainer: How Does the Fed Influence the Economy?" CBSNews. CBS Interactive, n.d. Web.
02 Dec. 2016.
-"Home." Economics For Teachers. N.p., n.d. Web. 02 Dec. 2016.
-"Current US Inflation Rates: 2006-2016." US Inflation Calculator. N.p., 2016. Web. 02 Dec.
2016.
-"Unemployment: A Key Concept in Economics." Unemployment: A Key Concept in
Economics. N.p., n.d. Web. 02 Dec. 2016.
-"Difference Between Short Term & Long Term Interest Rates | Sapling.com." Sapling.com.
N.p., n.d. Web. 02 Dec. 2016.
-http://data.bls.gov/timeseries/CES0000000001?output_view=net_1mth