Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is utilize to measure crouch musical rhythmBusiness cycles are frugal fluctuations . Business cycle phases include the turning point , 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 ascertain to clientele changes . Growth and boom phases are characterized by fruit in gross domestic product , amplify in employment and investments- scotch indicators are desirable . GDP is integrity of the economic indicators that are used to narrow 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 world-wide meas ure of economic activity It measures goods and serve produced within a country at a specify period , usually one year . Growth in GDP leads to gain 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 gigantic relief to the business . In case the GDP move , it means that per capita income will reduce the economic agents will arrive at tight budget constraints , decrease their consumption which will go demand for goods and services . This will adversely affect the business operations . Investments are likely to reduce and numerous businesses block 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 rise essay, order it on our website: OrderCustomPaper.c om

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