Measuring Economic Health
Gwendlyon J. Weaver
December 1, 2010
TO: All Team Members
FROM: Gwendlyon J. Weaver
DATE: December 1, 2010
SUBJECT: Measuring Economic Health
This memo is to all team members who have been assigned the task of determining the country's economic health. This memo will explain how the team will recognize and realistically determine the tool is used to determine Gross Domestic Product (GDP) to size up goods and services, which are generated in the United States during a set time frame. The GDP measures the economic output of the country, which is closely monitored by the Federal Reserve to decide whether or not if the economy is growing to slow or fast. The GDP business cycle is determined by the number of people who is legally employed along with everything produced and purchased in the economy.
The role of the government individuals who determined the national fiscal policies is to determine whether the amount spent by the government through purchases and taxes will cause these individuals to make changes to government spending and our taxes, which will directly impact our policy and should those designated individual always take into consideration the effects of the changes being made will have on the future of the economy.
In order for one to determine how the changes in government spending and taxes positively or negatively affects the economies production and employment the following must be considered.
The economic growth that increases the quality and quantity of goods and services will determine the result of hiring more workers and improving productivity. Policy makers should remember that business will expand when the expectation of future and reductions in individuals net pay slows down the growth of the economy because of the number of hours worked, so through the excessive spending of the government it negatively affects the output...
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