Economics

What Causes Recession?

Recessions can be triggered by an overheated economy, in which demand exceeds supply, pushing the economy past full employment and the nation’s resource capacity. Overheating can be sustained for a while, but expenditure will eventually fall as supply catches up to demand. What are the five reasons for a recession? In general, an economy’s expansion

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How Does GDP Calculated?

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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How Does Inflation Help The Economy?

Inflation is and has been a contentious topic in economics. Even the term “inflation” has diverse connotations depending on the situation. Many economists, businesspeople, and politicians believe that mild inflation is necessary to stimulate consumer spending, presuming that higher levels of expenditure are necessary for economic progress. How Can Inflation Be Good For The Economy?

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Where Should You Put Your Money During Inflation?

“While cash isn’t a growth asset, it will typically stay up with inflation in nominal terms if inflation is accompanied by rising short-term interest rates,” she continues. CFP and founder of Dare to Dream Financial Planning Anna N’Jie-Konte agrees. With the epidemic demonstrating how volatile the economy can be, N’Jie-Konte advises maintaining some money in

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