Measuring Economic Health
In the United States, Gross Domestic Product (GDP) takes the place of gross national product (GNP) as the most important unit of production. GDP sizes up the output of every part of labor and capital within the United States’ physical margin despite dwelling of labor or holder of capital. GNP sizes up the productivity supplied by people of the United States despite where they live and work or wherever their owned capital is.
The government bodies that determine national fiscal policies are the Department of Treasury, Office of Management and Budget, Office of the President of the United States, and Government Accountability Office. The Department of Treasury executes four critical tasks in addition to constructing and managing the fiscal policy. They formulate, implement and recommend economic, financial, tax and fiscal policies and serve as financial agents for the U.S. Government and also enforce laws and manufacture coins and currency. The Office of Management and Budget or OMB, serves as an aid to the President in analyzing and developing fiscal policies and executing his policies and programs. OMB assists in the development of all regulatory, procurement, e-gov, budget, policy, legislative, and management issues on behalf of the President. Office of the President of the United States decides the fiscal policies. This office consists of the President’s immediate and support staff members. Government Accountability Office (GAO) audits the fiscal policy, evaluates, and serves as the investigative arm of the United States Congress.
The way a government attempts to manage the economy through taxation, spending, and borrowing for the moment, causes stipulation on general labor, employment, and associated resources through government spending. Employment has the tendency to go up for the short- term but after an evaluation of the long term effect, there is no difference. Employment will eventually return to its expected stages...