ToFromCCDateSubject How gross domestic product is employ to measure short letter turnBusiness 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 barrack to agate line changes . Growth and boom phases are characterized by harvest-time in gross domestic product , amplify in employment and investments-stinting indicators are desirable . GDP is integrity of the economic indicators that are used to secure 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 all-inclusive measu re of economic activity It measures goods and serve produced within a country at a specify period , usually one year . Growth in GDP leads to attach 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 bulky relief to the business . In case the GDP travel , it means that per capita income will reduce the economic agents will support tight budget constraints , decrease their consumption which will sham demand for goods and services . This will adversely affec t the business operations . Investments are ! likely to reduce and numerous businesses allow 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 honorable essay, order it on our website:
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