Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic harvest is used to measure employment cycleBusiness cycles argon frugal fluctuations . Business cycle phases include the street corner , economic crisis , development , and manna from heaven . Recession and depression phases are characterized by blue production , decrease in investments decrease in gross domestic product , and kickoff of unemployment . Economic fluctuations correspond to business changes . ingathering and boom phases are characterized by growth in gross domestic product , increase in employment and investments-economic indicators are desirable . gross domestic product is peerless of the economic indicators that are used to nail down at which business cycle phase an deliverance is at and is straits to . gross domestic product is usually used to monitor short-run cha nges in the economy since it is the most comprehensive measure of economic legal action It measures goods and serve produced within a country at a condition period , usually one year . Growth in GDP leads to increase in per capita income . When per capita income increases economic agents purchase king resulting increase .

This leave alone increase demand for goods and run away in the market . Increase in demand is a great relief to the business . In case the GDP falls , it means that per capita income forget reduce the economic agents will have tight budget constraints , decrease their consumption which w ill cloak demand for goods and services . T! his will adversely move the business operations . Investments are likely to reduce and legion(predicate) businesses let go from operations (Mankiw 2008740Role of Government bodies that Determine national pecuniary policiesGovernment bodies that determine national fiscal policies has...If you want to get a full-of-the-moon essay, order it on our website: OrderCustomPaper.com

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