Measuring Economic Health Memo

ToFromCCDateSubject How gross domestic product is use to measure bank line make passBusiness cycles are frugal fluctuations . Business cycle phases include the recessional , 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 present to agate line changes . Growth and boom phases are characterized by harvesting in gross domestic product , amplify in employment and investments-stinting indicators are desirable . GDP is integrity of the economic indicators that are used to pay back at which business cycle phase an scrimping is at and is heading to . GDP is unremarkably used to monitor short-run changes in the economy since it is the most super measure o f economic activity It measures goods and serve produced within a country at a specify period , usually one year . Growth in GDP leads to growth 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 nifty relief to the business . In case the GDP go , it means that per capita income will reduce the economic agents will take for tight budget constraints , decrease their consumption which will endanger demand for goods and services . This will adversely affect t he business operations . Investments are lik! ely to reduce and numerous businesses depart from 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 secure essay, order it on our website: OrderCustomPaper.com

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