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I have zero knowledge of economics, so maybe someone can help me with the question that's been bothering me lately. Why is being in recession or not decided bas
by usrnm 4mo ago
I have zero knowledge of economics, so maybe someone can help me with the question that's been bothering me lately. Why is being in recession or not decided based on figures not adjusted for inflation? I mean, a large part of Europe is technically not in recession, but growing at a rate that's much lower than inflation is no real growth at all, is it? How does it work?
- transdev12 4mo agoReal GDP is adjusted for inflation, nominal GDP is not. Being in recession is typically defined as negative gdp growth. So to answer your question, being in recession does account for inflation.
- dimes 4mo ago“Real GDP” accounts for inflation already.
- josefritzishere 4mo agoEconomics is not a science but it sure likes to pretend that it is with lots of technical jargon. https://www.thecrimson.com/article/2013/12/13/economics-science-wang/ https://www.thecrimson.com/article/2013/12/13/economics-scie...