Examining The Gross Domestic Product (GDP)

There are certain aspects of macroeconomic that people should consider before opening his or her business. We should examine the Gross Domestic Product which is known as the GDP. “The gross domestic product (GDP) is one the primary indicators used to check the status of a country 's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy” For whom want to start his or her business should review the GDP over the past few years. For example, if the GDP of 2015 increased by 5%, then we would have an idea of the economy is growing. If the Gross Domestic Product is negative, then the economy is in a recession. If the economy goes into a recession, then people will find alternatives for certain items in their life. For example, some consumers might find it cheaper to ride the bus or train as oppose to driving to work. That will result in less people going shopping for themselves, when the economy is in a recession. It is very important for those who want run their own business to know the state of the economy and the direction it is projected to be leading before investing. I would not plan to open up my new businesses if the GDP is decreasing or if it is negative. We will also need …show more content…
Frictional unemployment is the most common type of unemployment. It refers to the time it takes unemployed people to decide on a job position and the time it takes employers to pick the right candidate. An example of frictional unemployment is when a person quits their current job in pursuit of a better one, but they have not found the new job yet. Frictional unemployment is typically short term and voluntary. However, we should monitor this because if the number is too high then it can affect the health of the