2010-08-26_023426_GDP - Describe the use of Gross Domestic...

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Describe the use of Gross Domestic Product (GDP) to measure the business cycle. Describe the roles of government bodies that determine national fiscal policies. Explain the effects of fiscal policies on the economy's production and employment. How do changes in government spending and taxes positively or negatively affect the economy's production and employment ? a. GDP is very important in measuring business cycles. GDP means total products and goods in the country and if there is two continuous Declines in GDP that means recession in the country. According to economic statistics the GDP measures national economic performance. GDP is very important measure that can lead to wrong or right conclusions. According to the NBER, a recession is “a period of significant decline in total output, income, employment, and trade, usually lasting from six months to a year, and marked by widespread contractions in many sectors of the economy.” Even the above definition of recession depends on the measurement of GDP.
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