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Economic Health

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Measuring Economic Health Memo
Felicia Tate-Harris
ECO/212 – Week Four
3/21/2012
-------------------------------------------------
Rana Hashemi Haeri

MEMORANDUM
TO: Rana Hashemi Haeri
FROM: Felicia Tate-Harris
DATE: March 21, 2012
RE: Measuring Economic Health

Gross Domestic Product (GDP)
Economic growth is measured in terms of an increase in the size of a nation's economy. A broad measure of an economy's size is its output. The most widely-used measure of economic output is the Gross Domestic Product (GDP).
GDP generally is defined as the market value of the goods and services produced by a country. One way to calculate a nation's GDP is to sum all expenditures in the country. This method is known as the expenditure approach and is described below.
2
There are four government bodies that are involved in the national fiscal policies: * Department of Treasury - The Department of Treasury is the main body that will manage and design the fiscal policy. * Office of management and budget - The office of management and budget, is the section of the government that will develop and analyze fiscal policy. * Office of the president - The office of the president has an input on the decision making regarding the fiscal policy. * Government accountability - There is a government accountability office that will audit the fiscal policy.
The Effects of Fiscal Policies on the economy’s Production and Employment:
A good fiscal policy means having control in spending, if you don't control spending you will have a non equilibrium on the market so it will need to adjust. Fiscal Policies are created when there are changes in federal taxes and purchases which are intended to achieve macroeconomic policy objectives.

This is done by understanding that macroeconomics is the study of the economy as a whole. These topics are inflation,

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