Economics

Does A Stock Market Crash Cause Recession?

Stock market crashes can create recessions by reducing corporate finance and consumer confidence. These crashes are most common after periods of irrational exuberance, when investors lose interest in whether a stock’s price truly reflects the company’s value. Crashes don’t always result in recessions, especially when the government intervenes to soften the damage to crucial economic

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How Is GDP Calculted?

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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