What is the average length of the boom and bust cycle in the U.S. economy?

June 30, 2024 No Comments

A: The boom and bust, better defined as expansion and contraction, business cycles of the U.S. economy averaged 38.7 months in expansion and 17.5 months in contraction between 1854 and 2009. According to the National Bureau of Economic Research, there were 33 business cycles between

What is the average length of the boom and bust cycle in the U.S. economy?

July 7, 2024 No Comments

What is the best way to measure the total market?

June 30, 2024 No Comments

A: There is a variety of market indices which function as statistical gauges of the market’s activities. Many investors look at the Dow Jones Industrial Average or the Nasdaq Composite Index as benchmarks or representatives of the stock market as a whole. However, these indices

What is the best way to measure the total market?

July 7, 2024 No Comments

What is the broken window fallacy?

June 30, 2024 No Comments

A: The broken window fallacy was first expressed by the great French economist, Frederic Bastiat. Bastiat used the parable of a broken window to point out why destruction doesn’t benefit the economy. In Bastiat’s tale, a man’s son breaks a pane of glass, meaning the

What is the broken window fallacy?

July 7, 2024 No Comments

What is the concept of utility in microeconomics?

June 30, 2024 No Comments

A: Utility is a loose and controversial topic in microeconomics. Generally speaking, utility refers to the degree of removed discomfort or perceived satisfaction that an individual receives from an economic act. For example, a consumer purchases a hamburger to stop the discomfort of hunger and

What is the concept of utility in microeconomics?

July 7, 2024 No Comments

What is the correlation between money supply and GDP?

June 30, 2024 No Comments

A: It is difficult to measure the money supply, but most economists use the Federal Reserve’s aggregates known as M1 and M2. Gross domestic product, or GDP, is another government statistic that is tricky to measure perfectly, but nominal GDP tends to rise with the

What is the correlation between money supply and GDP?

July 7, 2024 No Comments

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