Economics for Business

Feb 3rd, 2012
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California University of Management and Sciences
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This research defines how economists apply Gross Domestic Product to observe the national income in a country. This research will also identify the problems related with GDP to observe the national wealth and how can these issues be controlled. This research will also describe how a country can implement monetary and fiscal policy to impact the level of national income in the financial system in the short run. National income is the complete value a of national output of all new services and goods prepared in one year. Considering how national income is established is the beginning level for macroeconomics. This link is demonstrated in the identity of national income, where the amount obtained as national income is suitable to the amount spent as national expenses, which is also suitable to what is prepared as national output.

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