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Measuring Health Economics Essay

536 words - 3 pages

|To: |Juan Carlos Ginarte |
|From: |Takisha Gause |
|Date: |6/7/2010 |
|Subject: |Measuring Economic Health |

Economic health can be comprehended by knowing the significance of gross domestic products, fiscal policies, the effect of fiscal policies on the economy, and how the modifications in government spending and taxes influence the market assembly of employment.

GDP to Measure Business Cycle
In economics the term business cycle is used to refer to the cyclical fluctuations in gross domestic product (GDP). GDP ...view middle of the document...

Government Bodies That Determine Fiscal Policies
Fiscal policy is the option applied by governments concerning the stages of government purchases and taxes. Fiscal policies contain control on aggregate demand so when the government alters our fiscal policies, government spending or our taxes, our economy will be precisely influenced. Creators of the fiscal policy ought to grasp under vastly deliberating the outcome of these modifications. The Internal Revenue Service (IRS) is the revenue service of the United States federal government responsible for collecting taxes and the interpretation and the enforcement of the Internal Revenue Code, the body of federal tax law (Ehow, 1999-2010). The Federal Trade Commission is an independent agency of the United States government, whose task is the backing of "consumer protection" and the removal and avoidance of what supervisors recognize to be damagingly non-aggressive corporations. Federal Reserve is here to provide the nation with a safer, more flexible, and more stable monetary and financial system. Also, the U.S. Government Accountability Office (GAO) is known as "the investigative arm of Congress" and "the congressional watchdog." GAO supports the Congress in meeting its constitutional responsibilities and helps improve the performance and accountability of the federal government for the benefit of the American people.

The Effects of Fiscal Policies on the Economy’s Production and Employment
If there is high government spending and low taxation, it will channel money into the economy, and encourage spending. Examples of this are lowering VAT which, will cost the government by lowering taxation, but it will encourage spending, which will mean firms will expand and employ more people, and so on.
If there is low government spending, and high taxation, for example, if income tax goes up, will mean people have less disposable income, meaning they will spend less, and therefore the economy will contract as there is less money spent, so businesses will need to lay people off.

Rummery, S. (2002). Texas Labor Market Review. TEXAS WORKFORCE COMMISSION. Retrieved from

Ehow. (1999-2010). IRS. Retrieved from

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