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Re: Can ANYBODY please answer these simple ECONOMIC problems?
| quote: | Originally posted by zabrak
EDIT: Wait nevemrind people. Actually now all I need are reasons why the "GDP" could be problematic |
Why GDP could be a problem? Your question is far too vague.
You are probably referring to a possible recession of the American economy. Well, if GDP (Gross Domestic Product) decreases for two consecutive quarters, we will officially be in a recession. Now is this a problem? For a consumer economy like the US it is. People lose jobs, investment decreases, corporate profits decrease, etc. BUT, one symptom of a recession if falling prices, which can be good especially when economic bubbles occur like the real estate bubble. There is definately a recession in the financial/housing sector of the economy. This has not spread to the overall economy, yet. That's why you have to watch for the GDP report for the first quarter 2008. 4th quarter 2007, GDP growth fell from the 4% range to just .6%. So if it is below 0% growth, beware of recession...
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