Economics

What Affects Real GDP?

Adjustments for changes in inflation are factored into real GDP. This means that when inflation is high, real GDP is lower than nominal GDP, and vice versa. Positive inflation, without a real GDP adjustment, dramatically inflates nominal GDP. What factors have an impact on GDP? Natural resources, capital goods, human resources, and technology are the

What Affects Real GDP? Read More »

What Happens When Economy Goes Into Recession?

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

What Happens When Economy Goes Into Recession? Read More »