Answer:
1. Considering your previous knowledge of the business cycle; how does the business cycle directly impact the level of employment within an economy?
The business cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence.
Employment during the Boom: The boom allows consumption to increase and as a an aggregate effect the employment grows.
Employment during the Contraction: In the contraction the companies need to cut costs as revenues are not as high then they do not hire as much personnel as during the boom cycle.
2. Considering your previous knowledge of economic indicators; how does GDP represent the health of an economy?
GDP is the best economic indicator that humans have to measure the performance of an economy. First, is important to know that the GDP is the actual value of all the products and servicies of a given economy. Then, as all indicators it becomes usefull only when it is compared to other indicators.
representing the health of the economy:
- The grow of the GDP is always going to be desirable for any country. As well as the improvement of the Real GDP that measures the same as GDP but without inflationary effects.
- Or the grow in GDP per capita, which indicates how equitative is the economy in the distribution of its income.
