Why the health of the economy need to be measured?
To determine whether the economy is expanding or contracting
To take corrective action if needed to minimize fluctuation
The health of the economy is measured by two forms:
Gross domestic product
Budget deficit
Gross domestic product (GDP)?
Is the sum of all goods and services produced in a country during a year.
However GDP!!??
It does not include profits from other companies overseas operations; it does include profit earned by foreign companies within the country being measured only.
What is budget deficit?
When a government spends more money than it collects in revenue.
