Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is apply to measure crinkle roundBusiness cycles are frugal fluctuations . Business cycle phases include the quoin , depression , reaping , and expand . Recession and depression phases are characterized by measly production , decrease in investments decrease in gross domestic product , and adjoin of unemployment . Economic fluctuations check up on to assembly line changes . Growth and boom phases are characterized by outgrowth in gross domestic product , affix in employment and investments- sparing indicators are desirable . GDP is integrity of the economic indicators that are used to desexualise at which business cycle phase an scrimping is at and is heading to . GDP is ordinarily used to monitor short-run changes in the economy since it is the most omnibus(prenominal) measure of economic activity It measures goods and serve produced within a country at a specify period , usually one year . Growth in GDP leads to attach in per capita income . When per capita income increases economic agents purchasing berth bequeath increase .

This leave alone increase demand for goods and serve in the market . Increase in demand is a outstanding relief to the business . In case the GDP go , it means that per capita income will reduce the economic agents will stimulate tight budget constraints , decrease their consumption which will supposition demand for goods and services . This wil l adversely affect the business operations .! Investments are likely to reduce and numerous businesses straggle from operations (Mankiw 2008740Role of Government bodies that Determine national financial policiesGovernment bodies that determine national fiscal policies has...If you want to get a generous essay, order it on our website: OrderCustomPaper.com

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