Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is use to measure furrow daily roundBusiness cycles are frugal fluctuations . Business cycle phases include the deferral , 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 equip to subscriber line changes . Growth and boom phases are characterized by ontogeny in gross domestic product , summation in employment and investments- frugal indicators are desirable . GDP is integrity of the economic indicators that are used to jog at which business cycle phase an scrimping is at and is heading to . GDP is normally used to monitor short-run changes in the economy since it is the most all-embracing measure of ec onomic activity It measures goods and serve produced within a country at a specify period , usually one year . Growth in GDP leads to augment 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 enormous relief to the business . In case the GDP falls , it means that per capita income will reduce the economic agents will incur tight budget constraints , decrease their consumption which will gauge demand for goods and services . This will adversely affect the business operations . Investments are likely! to reduce and numerous businesses set forth 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 skillful essay, order it on our website: OrderCustomPaper.com

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