Why is it important to measure the growth of the economy?
- To help government planners make good decisions
Government organizations use information about the size and growth rate of the economy to set economy policy, interest rates, and trade policies.
Why are bear markets linked to recessions?
-Shareholders have little confidence in the economy.
A bear market is a period of consistently falling stock prices, which can lead to people selling off their stock while they are ahead which causes prices and confidence to continue falling.