Inflation is the rate at which the price of goods and services in a given economy rises. Inflation occurs when prices rise as manufacturing expenses, such as raw materials and wages, rise. Inflation can result from an increase in demand for products and services, as people are ready to pay more for them. Some businesses […]
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Stock index futures, such as the S&P 500 E-mini Futures (ES), reflect expectations for a stock index’s price at a later date, based on dividends and interest rates. Index futures are two-party agreements that are considered a zero-sum game because when one party wins, the other loses, and there is no net wealth transfer. While
Thus, a country’s GDP is equal to the sum of consumer spending (C), business investment (I), and government spending (G), as well as net exports (X M), which are total exports minus total imports. What goes into GDP calculations? The external balance of trade is the most essential of all the components that make up
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Gross domestic product (GDP) equals private consumption + gross private investment + government investment + government spending + (exports Minus imports). GDP is usually computed using international standards by the country’s official statistical agency. GDP is calculated in the United States by the Bureau of Economic Analysis, which is part of the Commerce Department. The
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As the Federal Reserve prepares to hike rates quickly, one of Wall Street’s most prominent recession indicators has gained traction in recent weeks: If the yield curve inverts in 2022, it could signify the start of a recession. While the yield curve remains mainly upward, it has begun to flatten in recent months as government
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This can be used to the quantity equation: money supply x velocity of money x real GDP. Inflation rate + growth rate of output = growth rate of the money supply + growth rate of the velocity of money. We took use of the fact that the price level’s growth rate is, by definition, the
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A recession is a period of economic contraction during which businesses experience lower demand and lose money. Companies begin laying off people in order to decrease costs and halt losses, resulting in rising unemployment rates. Re-employing individuals in new positions is a time-consuming and flexible process that faces certain specific problems due to the nature
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This article presents a brief overview of China’s growing prominence in the global economy and explores the global financial crisis’ spillover implications on China’s financial markets and macroeconomy. Alternative methods of estimating these effects are presented and critiqued. China, contrary to common belief, was hit particularly hard by the global recession brought on by the
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Because you’re betting on an event that won’t be resolved in the immediate future, like a single game, sportsbooks call these odds a futures bet. Instead, you place a wager on what will happen in the future. Usually, this means betting on the league’s overall winner, but this isn’t always the case. Placing a wager
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A bond futures contract allows a trader to speculate on the price movement of a bond and lock in a price for a specific period of time. If a trader buys a bond futures contract and the price of the bond rises and closes higher than the contract price at expiration, the trader makes a
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