Measuring Economic Health
- Submitted by: TonyaPreas
- Views: 618
- Category: Politics: Economics
- Date Submitted: 02/12/2011 01:13 PM
- Pages: 3
- Report this Essay
Measuring Economic Health
Tonya Preas
ECO/212
February 7, 2011
Joe Timmerman
Measuring Economic Health
Measurement of economic growth is done through the Gross Domestic Product (GDP) (QuickMBA, 1999-2010). Services produced and the market value of the goods produced defines the Gross Domestic Product (QuickMBA, 1999-2010). The output of an economy measures the size of that economy (QuickMBA, 1999-2010). When the growth of Gross Domestic Product is a result of inflation or population increases then there is no increase in purchasing power (QuickMBA, 1999-2010). Phases make up the business cycle (Holt, Rinehart, & Winston, pp. 7-8). These phases are expansion, peak, contraction, and trough (Holt, Rinehart, & Winston, pp. 7-8). The business cycle influence comes from the availability of money, business investments, changes in political climate, or the world’s economy (Holt, Rinehart, & Winston, pp. 7-8). The Gross Domestic Product fluctuates and these fluctuations are what make up the business cycle (Holt, Rinehart, & Winston, pp. 7-8).
The Gross Domestic Product measures the business cycle through the cyclical fluctuations (Rummery, 2002, p. 2). The Gross Domestic Product measures the economies production through monetary values (Rummery, 2002, p. 2). Historical data shows the business cycle moving through each phase makes up the cyclical fluctuations measured by the Gross Domestic Product (Rummery, 2002, p. 2). One key component of Gross Domestic Product is consumer expenditure (Rummery, 2002, p. 2). The Treasury Department is the government body that determines national fiscal policy (U.S. Department of the Treasury, 2010). They monitor the economy, spending, and fluctuating interest rates (U.S. Department of the Treasury, 2010). The Treasury Department uses this information to develop and manage fiscal policy (U.S. Department of the Treasury, 2010). Ensuring financial security and economic prosperity of the United States...
Tonya Preas
ECO/212
February 7, 2011
Joe Timmerman
Measuring Economic Health
Measurement of economic growth is done through the Gross Domestic Product (GDP) (QuickMBA, 1999-2010). Services produced and the market value of the goods produced defines the Gross Domestic Product (QuickMBA, 1999-2010). The output of an economy measures the size of that economy (QuickMBA, 1999-2010). When the growth of Gross Domestic Product is a result of inflation or population increases then there is no increase in purchasing power (QuickMBA, 1999-2010). Phases make up the business cycle (Holt, Rinehart, & Winston, pp. 7-8). These phases are expansion, peak, contraction, and trough (Holt, Rinehart, & Winston, pp. 7-8). The business cycle influence comes from the availability of money, business investments, changes in political climate, or the world’s economy (Holt, Rinehart, & Winston, pp. 7-8). The Gross Domestic Product fluctuates and these fluctuations are what make up the business cycle (Holt, Rinehart, & Winston, pp. 7-8).
The Gross Domestic Product measures the business cycle through the cyclical fluctuations (Rummery, 2002, p. 2). The Gross Domestic Product measures the economies production through monetary values (Rummery, 2002, p. 2). Historical data shows the business cycle moving through each phase makes up the cyclical fluctuations measured by the Gross Domestic Product (Rummery, 2002, p. 2). One key component of Gross Domestic Product is consumer expenditure (Rummery, 2002, p. 2). The Treasury Department is the government body that determines national fiscal policy (U.S. Department of the Treasury, 2010). They monitor the economy, spending, and fluctuating interest rates (U.S. Department of the Treasury, 2010). The Treasury Department uses this information to develop and manage fiscal policy (U.S. Department of the Treasury, 2010). Ensuring financial security and economic prosperity of the United States...