Economic Measurements Demonstrates Best The Health Of An Economy

All economic measurements indicate the health of an economy, but what economic measurement illustrates best the health of an economy? While researching the economic measurement of inflation, it provided information on the general level of prices for goods and services thus providing information about the current condition of the consumers and producers. With regards to the information about the current condition of the consumers and produces, its relevancy to the health of an economy pertains to supply and demand. In an inefficient economy, supply is low and demand is high, however, in an efficient economy, supply and demand show the opposite results. Although this information is useful in assessing the health of an economy, GDP provides much

From the information on private and public consumption, knowledge about supply and demand can be derived. If public and private consumption is high, that means consumers have the money to buy resources and producers have the supply for them to consume.Whereas if public and private consumption is low, the opposite results are true. So, in the case of public and private consumption being high, the economy would be in a healthy state. From the information on government outlays, you can see what economy policy the government has implemented: expansionary (high government spending and low taxation) or contractionary (low government spending and high taxation). When there is an expansionary policy, as a consequence, there will be increase in loss of capital as well as a possibility of a deficit. However when there is high taxation, consumer and producer surpluses decline. So, in the case of an expansionary or contractionary policies, the health of the economy can be derived from how much the consequences have an affect the economy. From information on investments, knowledge about how much money consumers have to spend can be derived. If there is a high number of