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Explain how the circular flow diagram illustrates the interaction of households, government, and business. Also, describe how current economic conditions affect your organization or one with which you are familiar. Identify the most important economic indicator affecting your organization and explain why.

Prepare a 700- to 1,050-word paper in which you define the following terms:
·         Gross domestic product (GDP)
·         Real GDP
·         Unemployment rate
·         Inflation rate
·         Interest rate

Explain how the circular flow diagram illustrates the interaction of households, government, and business. Also, describe how current economic conditions affect your organization or one with which you are familiar. Identify the most important economic indicator affecting your organization and explain why.


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