Measuring Economic Health Essay

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Measuring Economic Health
Luis D. Maymí
ECO 212
Prof.: Mayra Malpica Rivera
Universidad de Phoenix
27 de abril de 2015
Measuring Economic Health
The Gross Domestic Policy runs linear with the business cycle. GDP is used to provide markers that will indicate the economic health of a country, as well as to provide the country's standard of living. Economists using GDP as an economic measure mention that this method of statistic doesn’t take into account the underground economy. These transactions for whatever reason are not reported to the government.
There are many roles the government bodies play in determining national fiscal policies and they have large effects on the economy’s production and employment. As you can see this also affects the use of GDP to measure the business cycle. Here are some of the agencies and their role.
1. Department of Treasury – manages, constructs and Implements the fiscal policy
2. Office of Management and Budget- development and analysis of fiscal policy
3. Office of the President of the United States- Decision making of fiscal policy
4. Government Accountability Office-audits the fiscal policy
Government spending positively impacts the economy if used in the right way. This is to say that if the government purchases new roads or some type of infrastructures to be built, this in turn gives people jobs and the overall output is increased. When companies start investing in a country, all the developers ask for the fiscal policy. If the