Economics

What Calculates GDP?

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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When You Adjust For Inflation Which Is Worth More?

When the term “real” is used in the context of finance, it refers to something that has been “adjusted for inflation.” If you hear the phrase “real wages” it signifies that earnings aren’t rising faster than inflation. The “actual” increase in housing prices over time is similar. There is frequently a significant discrepancy between what

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What Investments Do Well During A Recession?

During a recession, a solid investing approach is to look for companies that are retaining strong balance sheets or stable business models despite the economic downturn. Utilities, basic consumer products conglomerates, and defense stocks are examples of these types of businesses. Investors frequently increase exposure to these groups in their portfolios in anticipation of declining

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