ECO 212 Week 4 IA Measuring Economic Health Memo

Measuring Economic Health Memo

Name

University of Phoenix

Measuring Economic Health Memo

As an economy runs and functions business cycles are made and these business cycles are measured in the gross domestic product figures. Plainly stated, gross domestic product, is a figure that signifies the total value of products that have been produced in a country on a given year. The percentage increase or decrease in the gross domestic product figure is a way of measuring and gauging the level of business cycle. Once the growth of the gross domestic product figure shows an increase from the last period, we can say that many of the businesses in the country has expanded or increases it operations or production and this is known to be an upward trend for the business activities in the economy. When the opposite happens and there is a decrease in the gross domestic product figure, then, it is considered to be a business recession and business activities have gone south or slowed down (Cady, 2010).