Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is employ to measure transmission line round of drinksBusiness cycles are frugal fluctuations . Business cycle phases include the niche , 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 conform to to phone line changes . Growth and boom phases are characterized by harvest in gross domestic product , ontogenesis in employment and investments- economical indicators are desirable . GDP is integrity of the economic indicators that are used to condition at which business cycle phase an scrimping is at and is heading to . GDP is usually used to monitor short-run changes in the economy since it is the most a ll-round(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 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 dandy relief to the business . In case the GDP waterfall , it means that per capita income will reduce the economic agents will swallow tight budget constraints , decrease their consumption which will go demand for goods and services . This will adversely affect the business op! erations . Investments are likely to reduce and numerous businesses disown 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 amply essay, order it on our website: OrderCustomPaper.com

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