ECONOMIC HEALTH MEMO

Measuring Economic Health Memo

Measuring Economic Health Memo

Describe the use of gross domestic product (GDP) to measure the business cycle.

The classic definition of the business cycle treats it as a type of fluctuations in aggregate economic activity of nations, the main elements of which are the fluctuations in output, employment and inflation. Leading indicator of cyclical dynamics of the system evaluation is so far the figure of the dynamics of gross domestic product (GDP). This macro variable summarizes the result of consumption of resources in the system brings together the natural production, distribution, and their price factors, the movement cost ...