1. How Does the Business Cycle Relate to Economic Health?
1.1. In order to find out the relations between the buss. cycle and economic health, you need to know what the four parts of the buss. cycle are. Those being expansion, peak, contraction, and trough. exp, is all buss. activity increases, peak is the highest point of profit, contraction is a period of economic decline, and trough is a buss. turning point.
1.1.1. The article below shows exactly what a buss. cycle is, and how the four different types, or parts can affect the health of an economy, it also includes charts to show how it has affected the economy since 1959.
1.2. Next, it reltes to economic health, because it also has period in which the economy either drops, or raises. Different indicators lead to possible issues, such as leading indicators, coincident indicators, and lagging indicators.
1.2.1. http://www.frbsf.org/education/publications/doctor-econ/2002/may/business-cycles-economy
1.3. There are very breif periods of time in which the economy is either really high, or really low, these are called Booms&Busts, as econoic health is related, they both have the dependant variable of ressession, this being a decline in economic activity, This also can depend on inventory, and most importantly depression, it can be a very long period of ressession, causing horrible outcomes.
2. What Does the Inflation Rate Reveal About an Economy’s Health?
2.1. The inflation rate tells us how much the money or currency in a specific area is worth, The best way to find this would be to use the Consumer Price Index, by using this, you can find out what the cost of consumer goods and services are, which in corolation with how valuable the money is, would give you your inflation rate.
2.1.1. The article shows what the economy's health is, and different ways that you can find them.
2.2. If the inflation rate is too high, then people aren't obligated to spend their money, due to it becomming virtually useless. And if the Deflation rate is too high, then people will buy way too much of any given product, putting an unequal ammount of currency in the government. You can find the formula for tracking the deflation and or possibly the inflation, by using the Price Index as well as Consumer or Pol. Index.
2.2.1. http://www.investopedia.com/articles/06/gdpinflation.asp
2.3. It could also reveal Creeping Inflation, which is inflation that is slowly, but surely always rising in certain places. This could destroy an economy or damage the value of the currency.
3. How do economists measure the size of the economy?
3.1. they calculate gdp by using the formula, c+i+g+nx This shows the value of their assets.
3.1.1. The article shows how you can measure the size of any economy, they provide a video and instructions for the viewer interested.
3.2. They have to use Gross Domstic Product., then when you measure that you can find out how many products are generally made, which tells how big it is
3.2.1. http://economics.about.com/od/economicindicatorintro/a/measure_economy.htm
3.3. gdp contains the basic literacy rate, death rate, and products produced along with all of their currency.
4. What Does the Unemployment Rate Tell Us About an Economy’s Health?
4.1. In order to find your health of the economy, you must find out which types of unemployment are affecting it. There is frictional unemployment, Cyclical unemployment, Seasonal Unemployment, and Structural Unemployment.
4.1.1. This article provides a 30minute audio clip explaining how to find how healthy the economy is, and what measuring the economy really means.
4.2. IIt explains, occasionally how the government measures unemployment, they use the B.L.S reports to total the ammount of people unemployed the past month, This is very effective in finding the statistics for a whole nation.
4.2.1. http://www.mprnews.org/story/2014/03/03/daily-circuit-leading-indicators