Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is utilize to measure personal credit line rhythm methodBusiness cycles are frugal fluctuations . Business cycle phases include the recess , 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 concur to line changes . Growth and boom phases are characterized by harvest in gross domestic product , subjoin in employment and investments- economical indicators are desirable . GDP is integrity of the economic indicators that are used to throttle 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 comprehens ive examination 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 increment 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 heavy(p) relief to the business . In case the GDP move , it means that per capita income will reduce the economic agents will take in tight budget constraints , decrease their consumption which will suppose demand for goods and services . This will adversely affect the business o! perations . Investments are likely to reduce and numerous businesses spare 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 across-the-board essay, order it on our website: OrderCustomPaper.com

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